Fitch solutions Archives - Page 3 of 3

02 Feb

We Are Optimistic Ghana Will Secure IMF Board Approval In quarter 1, 2023 – Fitch Solutions

wontumionlineBusinessFitch solutions, Ghana, imf, IMF lending arrangement, Mike Kruninger

Fitch Solutions, has expressed optimism of a likely International Monetary Fund Board approval for a programme for Ghana in the first quarter of 2023. In its January 2023 Sub-Saharan Africa Macroeconomic Update, it said the country has made significant progress on the Domestic Debt Exchange Programme, a key condition for the $3 billion Balance of Payment support from the Fund. Senior Country Risk Analyst at Fitch Solutions based in London, Mike Kruninger said “the first thing I should say is that, the IMF Executive Board approval will happen in the coming weeks”. He, however, warned that should the approval fail…

02 Feb

We Are Optimistic Ghana Will Secure IMF Board Approval In Quarter 1, 2023 – Fitch Solutions

wontumionlineBusinessFitch solutions, Ghana, imf, Mike Kruninger, Sub-Saharan Africa Macroeconomic Update

Fitch Solutions, has expressed optimism of a likely International Monetary Fund Board approval for a programme for Ghana in the first quarter of 2023. In its January 2023 Sub-Saharan Africa Macroeconomic Update, it said the country has made significant progress on the Domestic Debt Exchange Programme, a key condition for the $3 billion Balance of Payment support from the Fund. Senior Country Risk Analyst at Fitch Solutions based in London, Mike Kruninger said “the first thing I should say is that, the IMF Executive Board approval will happen in the coming weeks”. He, however, warned that should the approval fail…

19 Jan

Ghana To End 2023 With 33.4% Average Inflation – Fitch Solutions

wontumionlineBusinessdisinflationary trend, Fitch solutions, Inflation

International research institution and market information firm, Fitch Solutions, has reiterated a disinflationary process for Ghana in 2023, forecasting an average inflation of 33.4%. According to its latest assessment of the Ghanaian economy, inflation will only decline gradually in 2023 as tax hikes – including an increase in the Value-Added Tax to 15.0% – will exert upward pressure on consumer prices. The projection means inflation will still remain high this, but lower than last 2022’s average. “A decline in real incomes will weaken consumer activity in 2023. We anticipate a disinflationary trend in 2023 – with price growth averaging 33.4%. Fitch…

30 Dec

2023 Budget Will Boost Revenue But Expenditure Estimate Is Not Realistic – Fitch Solutions

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Research and market information firm, Fitch Solutions, expects Ghana’s revenue collection to improve significantly in 2023 on the back of an increase in the Value Added Tax (VAT) rate and other tax measures. However, it is worried the expenditure estimate for next year is well above its 2022 target, despite its weak fiscal position. Speaking on the outlook of the Ghanaian economy for 2023, a Senior Country Risk Analyst at Fitch Solutions, Mike Kruninger, expressed worry that the 2022 Budget was expansionary rather than contractionary and failed to address the weak economic fundamentals. “Minister of Finance, Ken Ofori Atta, presented…

28 Dec

Policy Rate To Hit 29% In 2023; Cost Of Loans To Further Escalate – Fitch Solutions

wontumionlineBusinessBoG, Fitch solutions, Inflation

Fitch Solutions is projecting a further monetary tightening by the Bank of Ghana [BOG] next year. According to the UK based research and market information firm, the policy rate will go up by a further 200 basis points to 29% in 2023. This will trigger an increase in the cost of credit and consequently heighten the cost of doing business in the country. The policy rate has already gone up by more than 12.5% in 2022 due to the skyrocketing inflation. It stood at 14.5% in January 2022, but currently at 27%. Senior Country Risk Analyst at Fitch Solutions, Mike…

15 Dec

Fitch Solutions Predicts Stronger Cedi In 2023

wontumionlineBusinessCEDI, dollar, Fitch solutions, Ghana’s 2023 Economic Outlook, pound

International institution, Fitch Solutions, is predicting a stronger cedi against the major foreign currencies in 2023. According to its latest analysis of Ghana’s 2023 Economic Outlook, it said the likely programme from the International Monetary Fund (IMF) signals through investors that the government is committed to fiscal consolidation that will turn around the country’s economic predicament. Senior Country Risk Analyst at Fitch Solutions, Mark Kruninger said the announcement of the staff-level agreement by the IMF has helped to improve the value of the cedi. The local currency has for the past one week witnessed over 20 percent gain in value…

21 Nov

BoG To Continue Policy Rate Hiking Cycle As Part Of IMF Condition – Fitch Solutions

wontumionlineBusinessBoG, Fitch solutions, imf, policy rate

The Bank of Ghana will continue its policy rate hiking cycle, increasing the benchmark interest rate to 27% by the end of 2023. According to international research institution, Fitch Solutions, this it believes will bring real rates into positive territory. “We expect that this will bring real rates into positive territory, stimulating capital inflows and providing support to the exchange rate, which will allow the cedi to depreciate at a slower pace over 2023”. Given a high inflation, Fitch Solutions, stressed that it expects the Bank of Ghana to tighten monetary policy as a condition of the International Monetary Fund…

10 Nov

Fitch Solutions Predicts Disinflation Process For Ghana In 2023; Inflation To Average 18.7%

wontumionlineBusinessFitch solutions, imf, Inflation

International research institution, Fitch Solutions, is forecasting a disinflation process for Ghana throughout next year. This is due to an expected programme from the International Monetary Fund and the stabilisation of the cedi. It expects inflation to average about 18.7% in 2023, from over 30% in 2022. Senior Country Risk Analyst at Fitch Solutions Mike Kruiniger says these are necessary measures for economic growth. “We expect disinflation throughout 2023 as the exchange rate stabilised on an expected IMF deal. It will remain elevated at an average of 18.7%.” “As such, it will continue to exert downside pressure on household purchasing…