Ghana’s public debt surges by GH¢47.4 billion in early 2024 to reach a total of GH¢658.6 billion
Ghana’s public debt has surged by GH¢47.4 billion within the first two months of 2024, reaching a total of GH¢658.6 billion, equivalent to 62.7% of the Gross Domestic Product (GDP) by February 2024.
The external debt portion stands at GH₵380 billion, or 36.1% of the GDP.
These figures, reported by the Bank of Ghana in its May 2024 Summary of Economic and Financial Data, indicate a notable increase from GH¢611.2 billion at the end of 2023 to GH¢626 billion in January 2024, and further to GH¢658.6 billion in February 2024.
The debt rise is partially attributed to the depreciation of the cedi against major trading currencies. In response to the severe impact of the COVID-19 pandemic, Ghana sought a $3 billion bailout from the International Monetary Fund (IMF) to stabilize its economy.
The IMF has projected a steady decline in Ghana’s debt-to-GDP ratio over the next six years. According to its April 2024 Fiscal Monitor, the ratio is expected to decrease from 83.6% in 2024 to 69.7% by 2029, with intermediate estimates of 80.9% in 2025, 77.9% in 2026, 74.9% in 2027, and 72.0% in 2028.
The IMF has previously acknowledged improvements in Ghana’s fiscal economy.
