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.
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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.