Ghana’s public debt hits GH₵658.6bn

In the first two months of 2024, Ghana’s public debt rose by GH¢47.4 billion, totaling GH¢658.6 billion, which represents 62.7% of the Gross Domestic Product (GDP) by February 2024. The external debt was reported at GH¢380 billion, equivalent to 36.1% of the GDP.

These numbers were disclosed in the Bank of Ghana’s May 2024 Summary of Economic and Financial Data. The data shows that Ghana’s debt was GH¢611.2 billion at the close of 2023, increasing to GH¢626 billion in January 2024, and further rising to GH¢658.6 billion in February 2024.

The increase in debt can be partly attributed to the depreciation of the cedi against major currencies due to the COVID-19 pandemic’s severe impact. Seeking stability, Ghana requested a $3 billion bailout from the International Monetary Fund (IMF).

The IMF has projected a gradual decrease in Ghana’s debt-to-GDP ratio over the next six years, with expectations of reaching 69.7% by 2029. The ratio is forecasted to be 83.6% in 2024, followed by 80.9% in 2025, 77.9% in 2026, 74.9% in 2027, and 72.0% in 2028.

Past acknowledgments of improvements in Ghana’s fiscal economy by the IMF have been noted.