Accra, May 2024 – Ghana’s public debt has surged by GH₵47.4 billion in just the first two months of 2024, reaching a staggering GH₵658.6 billion. This figure, which represents 62.7% of the nation’s Gross Domestic Product (GDP) as of February 2024, was unveiled by the Bank of Ghana in its May 2024 Summary of Economic and Financial Data.
The sharp rise in debt from GH₵611.2 billion at the end of 2023 to GH₵658.6 billion in February 2024 highlights the economic challenges facing the country. A significant factor in this increase has been the depreciation of the cedi against major trading currencies.
Ghana’s external debt component now stands at GH₵380 billion, equivalent to 36.1% of the GDP. To address these fiscal pressures, Ghana secured a $3 billion bailout from the International Monetary Fund (IMF) aimed at stabilizing the economy amid ongoing challenges exacerbated by the COVID-19 pandemic.
Despite the current economic hurdles, the IMF remains optimistic about Ghana’s fiscal future. According to the IMF’s April 2024 Fiscal Monitor, the country’s debt-to-GDP ratio is projected to gradually decline over the next six years. The forecasted ratios indicate a peak at 83.6% in 2024, then a decline to 80.9% in 2025, 77.9% in 2026, 74.9% in 2027, 72.0% in 2028, and eventually reaching 69.7% by 2029.
The IMF has commended Ghana for its efforts to improve its fiscal economy, noting significant strides in stabilizing its financial situation. This projection brings a glimmer of hope amidst the current economic turbulence, suggesting a more stable and prosperous financial future for the nation.
