Ghana’s total debt stock has surged to a provisional GH¢742 billion (US$50.9 billion) as of June this year, representing a staggering 70.6% of the country’s Gross Domestic Product (GDP). This was revealed by Finance Minister Dr. Mohammed Amin Adam during the 2024 mid-year budget review in parliament on Tuesday.
The debt stock has increased by 22.0% due to the cedi’s depreciation and continuous disbursements from creditors. The breakdown shows that external debt stands at GH¢452.0 billion (60.9% of total debt) and domestic debt at GH¢290.0 billion (39.1% of total debt).
As a percentage of GDP, external debt accounts for 43.0% and domestic debt 27.6%. This alarming rise in debt has raised concerns about the country’s fiscal sustainability and its ability to meet its financial obligations. The government’s debt management strategy will come under scrutiny as Ghana navigates its economic challenges.
CNR/Ruth Abla ADJORLOLO
