Ghana’s Public Debt Soars to GH₵658.6 Billion

Ghana’s public debt has surged by GH₵47.4 billion in the first two months of 2024, reaching a staggering total of GH₵658.6 billion.

According to the Bank of Ghana’s Summary of Economic and Financial Data, this represents an alarming 62.7% of the country’s Gross Domestic Product (GDP) as of February 2024.

The external debt component stands at GH₵380 billion, equivalent to 36.1% of GDP. The debt accumulation is primarily attributed to the depreciation of the cedi against major trading currencies.

In response to the severe economic impact of the COVID-19 pandemic, Ghana secured a $3 billion bailout from the International Monetary Fund (IMF) in 2023.

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Despite the IMF’s projection of a steady decline in Ghana’s debt-to-GDP ratio over the next six years, the current surge raises concerns about the country’s long-term fiscal sustainability.

The IMF’s Fiscal Monitor projects a debt-to-GDP ratio of 83.6% in 2024, gradually decreasing to 69.7% by 2029.

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The IMF had previously acknowledged positive developments in Ghana’s fiscal economy, but the recent debt increase calls for heightened attention and prudent management.