In the first two months of 2024, Ghana’s public debt increased significantly by GH¢47.4 billion, reaching a record high of GH¢658.6 billion. The Bank of Ghana disclosed this information in its latest Summary of Economic and Financial Data. This surge represents 62.7% of the country’s Gross Domestic Product (GDP) as of February 2024, with external debt alone accounting for GH₵380 billion or 36.1% of the GDP.
The figures show a substantial rise from the GH¢611.2 billion recorded at the end of 2023, escalating to GH¢626 billion in January and further ballooning to GH¢658.6 billion by February. Analysts attribute this increase in indebtedness to the depreciation of the cedi against major currencies.
In response to the economic challenges exacerbated by the COVID-19 pandemic, Ghana secured a $3 billion bailout from the International Monetary Fund (IMF) to strengthen its economy. The IMF’s April 2024 Fiscal Monitor predicts a gradual reduction in Ghana’s debt-to-GDP ratio over the next six years, projecting a decrease to 69.7% by 2029.
The anticipated trajectory indicates a decline from an estimated 83.6% in 2024 to 80.9% in 2025, followed by 77.9% in 2026, 74.9% in 2027, and 72.0% in 2028. These projections align with the IMF’s recognition of improvements in Ghana’s fiscal landscape, signaling a cautiously optimistic outlook for the nation’s economic stability.
Source: sankofaonline.com
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