S&P Downgrade: Quicken Pace of Fiscal Consolidation – Economist to Gov’t

Economist with Databank, Courage Martey has reiterated calls for government to hasten the pace of fiscal consolidation in the short to medium term.

In an interview with Citi Business News, the economist said this will restore the country back above the current downgraded position that the country is facing.

His call comes as international ratings agency, S&P Global Ratings, last week revised Ghana’s rating from B-/B to CCC+/C, a situation that threatens Ghana’s debt sustainability efforts with investors demanding higher credit risk premium.

“There are a number of things that need to be done for us to get an upgrade. It significantly hinges on rebuilding fiscal and external buffers because that has been the main point of concern for investors.  There must be an improvement in our fiscal deficit position. Now, if you look at the S&P statement, for instance, they essentially considered the need to record a primary surplus equivalent to 2% of GDP.”