Tag: Fitch

New Afreximbank President Confronts Strategic Crossroads Amid Fitch Downgrade – Bright Simons
Business & EconomyNews

New Afreximbank President Confronts Strategic Crossroads Amid Fitch Downgrade – Bright Simons

Afreximbank’s new president faces a critical choice: retain a high-risk lending model…

4 Min Read
Ghana’s headline unemployment rate is expected to hold steady at 3.1% through 2025 and 2026, according to a new report by Fitch Solutions' Country Risk team. However, the seemingly low rate masks a deeper set of structural issues within the Ghanaian labour market issues that continue to weigh on the country’s economic resilience and social fabric. Fitch’s projection signals a continuation of the gradual upward trend observed since 2017, suggesting that while unemployment may appear stable, underlying vulnerabilities in labour quality and workforce sustainability remain unaddressed. “A significant constraint stems from the country’s low life expectancy estimated at just 64.3 years which dampens the productive capacity of the labour force,” the report stated. The short life expectancy, Fitch notes, is a result of chronic underinvestment in public healthcare and a persistent burden of waterborne diseases and illnesses such as HIV/AIDS. These health challenges erode long-term productivity and workforce stability. Compounding the issue is a widening skills gap. The report highlights a growing reliance on expatriate professionals across key sectors, as the local talent pool struggles to meet demand for highly skilled labour. This talent deficit limits Ghana’s ability to drive innovation and growth from within. Contradiction with Local Data Fitch’s unemployment forecast stands in stark contrast to data published by the Ghana Statistical Service (GSS). According to the GSS Q3 2023 Labour Statistics report, Ghana’s average unemployment rate for the first three quarters of 2023 stood at a significantly higher 14.7%. The report also underscored persistent gender and urban-rural disparities: Gender Gap: Female unemployment has consistently outpaced male rates, with the gap widening through 2023. Urban-Rural Divide: Urban unemployment was nearly double that of rural areas in Q2 and Q3 of 2023. These discrepancies raise questions about the methodology used in various labour statistics and highlight the complexity of capturing Ghana’s employment realities, particularly in an economy heavily marked by informality and underemployment. Ghana’s job market is a flashpoint for public discontent. A recent 2024 Afrobarometer survey identified unemployment as the top national concern—ranking higher than infrastructure deficits and healthcare gaps. This sentiment reflects deep frustration, particularly among the youth, who face limited prospects for formal employment despite high education levels. “While the unemployment rate may appear modest by international standards, the data masks underemployment and informality both of which are endemic in Ghana’s economy,” the Fitch report warns. Indeed, a vast portion of Ghana’s working population remains trapped in low-income, informal jobs with little social protection or upward mobility. Amid these structural imbalances, Fitch advocates for long-term reform to boost employment opportunities and create a more inclusive economy. Public sentiment remains cautiously optimistic, with support for government-led initiatives aimed at improving access to education, healthcare, and job opportunities. However, Fitch warns that without meaningful change, Ghana’s potential demographic dividend may become a demographic burden. The need for a coherent jobs strategy one that addresses both formal employment creation and the quality of work is more urgent than ever. Tackling informality, enhancing vocational training, and investing in public health could yield the workforce transformation Ghana requires for inclusive and sustainable growth. As Ghana holds steady on paper, the real labour market story lies beneath the surface demanding urgent attention from both policymakers and private sector stakeholders.
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Ghana’s Unemployment Rate to Remain at 3.1% in 2025, But Underlying Challenges Persist – Fitch Solutions

Fitch Solutions projects Ghana’s unemployment rate will remain at 3.1% for two…

4 Min Read
Ghana’s Banking Sector Tops Sub-Saharan Africa in Loan Default Exposure-Fitch Warns of Fragile Outlook
Business & EconomyNews

Ghana’s Banking Sector Tops Sub-Saharan Africa in Loan Default Exposure-Fitch Warns of Fragile Outlook

Fitch Solutions ranks Ghana’s banking sector as the most exposed to non-performing…

3 Min Read
Ghana Moves to Offset USAID Funding Cuts with NHIL Uncapping. Will It Be Enough?
Business & Economy

Fitch Projects Dip in Ghana’s Current Account Surplus Amid U.S. Aid Cuts

Fitch projects a 3% drop in Ghana’s current account surplus in 2025…

2 Min Read
Global Perspectives & Leisure

Major Currencies Gain Against US Dollar Despite Tariff Hikes – Fitch

Fitch reports major currencies rose against the US dollar in 2025, driven…

2 Min Read
If Cocoa Fails and Gold Drops, Ghana Could Be in Serious Trouble – Joe Jackson
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Fitch Solutions: Ghana to Stick with IMF Programme Amid Fiscal Efforts

Fitch solutions has said Ghana's government will continue its fiscal consolidation under…

2 Min Read
Fitch Says Ghana’s $750M Debt Restructuring Played a Role in 'Junk Status' of Afreximbank
Business & Economy

Ghana’s External Debt Restructuring Shows Limited Impact on Bank Capitalization – Fitch

Ghana's banking sector shows resilience despite DDEP's impact, with Fitch highlighting regulatory…

1 Min Read
Fitch Solutions
Business & Economy

Ghana’s 2025 Budget Deficit to Shrink to 4.2% as Fiscal Tightening Slows Growth 

Fitch Solutions forecasts Ghana's budget deficit to narrow to 4.2% of GDP…

2 Min Read
Business & Economy

Assibey-Yeboah Rejects Fitch’s Ghana Liquidity Concerns

Dr. Mark Assibey-Yeboah disputes Fitch's liquidity concerns for Ghana, citing $8 billion…

1 Min Read
News

Ghana Likely to Exit from Sovereign Default by July 2025 – Fitch Projects

Fitch projects Ghana to exit sovereign default by mid-2025, contingent on successful…

2 Min Read
World News

Ex-Abercrombie CEO pleads not guilty to sex trafficking charges

Ex-Abercrombie & Fitch CEO Mike Jeffries has pleaded not guilty to charges…

5 Min Read