Ghana’s public debt hits GH¢761.2bn, 75.7% of GDP

According to the latest Bank of Ghana data, Ghana’s public debt has reached GH¢761.2 billion ($51.1 billion), equivalent to 75.7 percent of GDP. This represents a significant increase from earlier in the year when it was at GH¢633.3 billion and GH¢587 billion in 2023.

The mounting debt reveals the growing financial challenges Ghana is facing amid economic difficulties and complex external debt restructuring. The external debt alone now stands at 47.1% of GDP, totaling GH¢470.3 billion or $31.6 billion, up from 36% at the beginning of the year.

Although the external debt is lower than the 39.2% recorded last year, concerns are rising about Ghana’s ability to manage its debt without further straining the economy. With a nominal GDP of GH¢1.02 trillion, there are growing worries about the nation’s debt sustainability.

These figures are likely to increase scrutiny of the government’s fiscal policies, as investors and financial institutions closely watch Ghana’s efforts to seek debt relief from external creditors. The data emphasizes the urgent need for structural reforms to stabilize the economy and reduce the risk of more debt distress, particularly in light of external vulnerabilities.