Ghana’s public debt has risen sharply to GHS 761.2 billion ($51.1 billion), representing 75.7% of GDP, according to the latest figures from the Bank of Ghana (BoG).
This is a significant jump from the GHS 633.3 billion recorded at the beginning of the year, and an even steeper rise from the GHS 587 billion during the same period in 2023.
The increase in Ghana’s debt load highlights growing fiscal pressures as the country grapples with economic challenges and an extensive external debt restructuring programme.
External debt now accounts for 47.1% of GDP, translating to GHS 470.3 billion ($31.6 billion). This is up from 36% of GDP at the start of the year, reflecting ongoing efforts to finance the country’s balance of payments.
However, the external debt figure remains lower than the 39.2% of GDP recorded in the same period last year.
Domestic debt, meanwhile, stands at GHS 290.9 billion, representing 28.5% of GDP. This marks a slight increase from the 26% seen at the beginning of the year but is lower than the 30.6% figure reported during the same period in 2023.
With Ghana’s nominal GDP currently valued at GHS 1.02 trillion, the country’s debt burden continues to mount amid concerns over its ability to service these obligations without further economic strain.
The latest debt figures are expected to prompt renewed scrutiny of the government’s fiscal policies, with investors and international financial institutions watching closely as Ghana pursues debt relief agreements with external creditors.
The figures further underscore the urgency of structural reforms to restore macroeconomic stability and reduce the risk of debt distress, especially in light of external vulnerabilities.
Source:norvanreports.com