Fitch ratings agency has on Friday upgraded Ghana’s outlook to Stable.

Fitch says Ghana is making progress in stabilizing the economy after recent “crisis period”, with expected revival in GDP growth, declining inflation.

The agency added that the new government will make progress in reducing budget deficit after election related slippage in 2016, albeit with downside risks.

Ghana was seen as having one of Africa’s most dynamic economies until it was hit by fall in oil prices and a fiscal crisis caused by government spending on civil service wages in 2014.

It is now following a $918-million International Monetary Fund programme to restore fiscal balance.

The Chairman of Parliament’s Finance Committee, Dr. Mark Assibey Yeboah in an interview with Kasapafmonline.com said the development is a springboard for the country’s economy to bounce back.

“This is good news for Ghana. Once we have a stable economy, it will attract more investors to do business in Ghana. It also gives a signal that inflation is on the decline and the Cedi is relatively stable and the confidence in the Ghanaian economy is much higher now. This also gives the government more credibility and so their cost of borrowing will decline.”