Ghana’s economic buffer, its current account surplus, expected to shrink by 3 per cent in 2025, following a drastic cut in aid from the United States, according to a recent forecast by ratings agency Fitch.
The decline is primarily attributed to the U.S. government’s decision to slash funding to the United States Agency for International Development (USAID) by 90 per cent. Fitch warned that the cutback could significantly affect Ghana and other African nations, where international aid plays a critical role in foreign exchange inflows. In Ghana’s case, such transfers currently make up about half of all net inflows to the current account.
