Fitch Upgrade Vindicates NPP’s Economic Legacy –Minority

The Minority in Parliament says the recent Fitch Ratings upgrade of Ghana’s economy vindicates the NPP’s economic legacy.

The statement, signed by Dr. Mohammed Amin Adam, Ranking Member on the Finance Committee and Kojo Oppong Nkrumah, Ranking Member on the Committee on Economy and Development welcomed the upgrade, but warned that the gains were at risk due to the current government’s fiscal mismanagement.

“These developments vindicate the NPP’s stance that the economy bequeathed the NDC was strong and laid the foundation for accelerating economic development.”

According to Fitch, the upgrade was largely driven by Ghana’s debt restructuring progress in 2024, including the successful completion in October of a $13 billion Eurobond restructuring deal.

The Minority credited this progress to the groundwork laid by the former New Patriotic Party (NPP) administration.

“This development vindicates the NPP’s stance that the economy we handed over to the NDC was resilient and the solid foundations we laid are what have made this rebound possible,” the statement declared.

Fitch’s report acknowledged that Ghana had significantly reduced its debt repayment burden, resulting in a more favourable outlook.

The debt restructuring secured a total relief of about $12 billion, which the Minority claims was made possible by efforts initiated by the NPP government, before the transition of power.

The report also praised a record current account surplus of 4.3% of GDP in 2024 and noted a steady decline in inflation from 44% in 2022 to 23% in 2024 and further down to 18% by May 2025.

GDP growth remained robust at 5.7% in 2024 though Fitch projects a decline to 4% in 2025 and 4.5% in 2026.

However, the Minority cautioned that Fitch’s endorsement was tempered by concerns about the credibility of the 2025 budget presented by the NDC government.

“Fitch has flagged serious doubts about the government’s ability to meet its own fiscal and monetary targets for 2025,” said Kojo Oppong Nkrumah.

The opposition pointed to Fitch’s projection of 15% end-year inflation in contrast to the government’s target of 11%, and a primary surplus of just 0.5%, falling short of the 1.5% promised in the 2025 budget.

“These gaps in fiscal targets not only expose the government’s overconfidence, but they also risk undermining Ghana’s hard-won macroeconomic gains,” they stated.

The Minority also questioned the sustainability of the government’s revenue enhancement strategies, citing Fitch’s warning that the debt service-to-revenue ratio would worsen to 26% in both 2025 and 2026, up from 25% in 2024. This deviation threatens Ghana’s ability to meet key IMF program benchmarks.

Despite acknowledging the NDC’s effort to restructure the remaining $2.6 billion in commercial debt, about 5% of the total restructuring parameters, the Minority insists, that stronger measures are needed to reinforce investor confidence and economic recovery.

“Instead of engaging in propaganda, the government must act boldly and revise its 2025 budget targets to reflect the true state of the economy. The mid-year budget review in July is a critical opportunity to do just that,” the statement noted.

The statement concluded with a direct call on the Finance Minister to “urgently revise the budget targets” during the mid-year budget presentation to Parliament, warning that failure to do so could further erode both investor and public confidence.

The post Fitch Upgrade Vindicates NPP’s Economic Legacy –Minority appeared first on The Ghanaian Chronicle.

Read Full Story