Fitch’s projection of a low risk of policy deviation ahead of Ghana’s December 2024 elections indicates that the current government is likely to maintain its economic policies and commitments, particularly those related to the International Monetary Fund (IMF) programme. This is significant, given the historical trend of fiscal slippages during election years.
The low fiscal slippage will have a positive impact on Ghanaians, especially traders. Adhering to the IMF programme ensures a continued focus on fiscal discipline, maintaining economic stability and benefiting traders who rely on a stable environment for business planning and operations.
The IMF programme also includes measures to control inflation, resulting in stable or lower inflation rates. This helps traders manage costs better, as the cost of goods and services will not rise unpredictably.
Moreover, commitment to the IMF programme can lead to a more stable currency exchange rate, reducing the risk of price volatility and helping traders plan for imports and pricing their products.
Fitch’s positive outlook implies that Ghanaians, particularly traders, could benefit from a more predictable and stable economic environment, enabling them to plan and operate their businesses more effectively.
