Ghana’s public debt has seen a significant increase of GH¢47.4 billion within the first two months of 2024, reaching a total of GH¢658.6 billion.
This accounts for 62.7% of the Gross Domestic Product (GDP) by February 2024. The external debt stands at GH₵380 billion, which is equivalent to 36.1% of the GDP.
These figures were reported by the Bank of Ghana in its May 2024 Summary of Economic and Financial Data.
According to the data, Ghana’s debt was GH¢611.2 billion at the end of 2023, but it rose to GH¢626 billion in January 2024 and further increased to GH¢658.6 billion in February 2024.
The increase in debt can be partially attributed to the depreciation of the cedi against major trading currencies.
In the wake of the severe impact of the COVID-19 pandemic, Ghana sought a $3 billion bailout from the International Monetary Fund (IMF) in an effort to stabilize the economy.
The IMF has projected a steady decline in Ghana’s debt-to-GDP ratio over the next six years.
According to its April 2024 Fiscal Monitor, Ghana’s debt-to-GDP ratio is expected to decrease to 69.7% by 2029.
The ratio is estimated 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.
The IMF had previously acknowledged improvements in Ghana’s fiscal economy.