The Institute of Fiscal Studies (IFS) has charged government to take stringent decisions in its quest to revive Ghana’s economy amidst harsh conditions.

According to the IFS, the country’s fiscal deficit continues to deteriorate with an upsurge in the macroeconomic instability of the country.

The institute blames the situation on what it describes as excess borrowing by successive governments.

In an interview with Citi News, a Senior Research Fellow with the IFS, Dr. Siad Boakye said “considering the current state of the economy, government will have to stand its grounds and take some stringent decisions in its quest to revive the country amidst the harsh economic conditions.”

”For instance, it will help if government takes the bold decision to review its flagship programs.”

While Ghana has turned to the IMF for support, Fitch had downgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ from ‘B’ and the outlook was negative.

Moody’s Investors Service (Moody’s) also downgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa1 from B3 and changed the outlook to stable from negative.

On August 5, 2022, S&P also downgraded Ghana’s foreign and local credit ratings from B-B’ to CCC+C with a negative economic outlook.