S&P Global Ratings confirmed this weekend its long-term “B” and “B” short-term sovereign credit ratings on Togo. The outlook is stable.
The agency said the stable outlook reflects the view that Togo will continue to implement structural economic reforms, leading to a gradual improvement in economic and fiscal performance.
“Upward ratings could occur if Togo’s economic growth is significantly stronger than expected, while the external and budgetary deficits, and the net public debt as a percentage of GDP, decrease significantly”, notes the agency, recalling that “Ratings could come under pressure if the government’s fiscal performance deteriorates beyond expectations, and if real GDP growth rates are significantly lower than expected.”
In addition, the institution stressed that the GDP per capita of Togo will remain low, but economic reforms and investments in key infrastructure underpin growth prospects.
According to S & P’s forecasts, Togo’s growth will rebound to 4.9% in 2021 and will return to its pre-pandemic average rate of 5.5% in 2022-2024. This after having experienced a slowdown in its growth to 1.8% in 2020.
