Ghana’s total public debt stock has decreased by GH¢24 billion, bringing the total value to GH¢736.9 billion as of November 2024.
This is according to the latest data from the Bank of Ghana.
In dollar terms, however, the debt rose marginally from $47.9 billion to $46.8 billion between October and November 2024, largely due to fluctuations in the local currency.
The drop represents progress in addressing the debt-to-GDP ratio, a critical benchmark for fiscal sustainability. Currently, the percentage of the total public debt to GDP stands at 72.2%, down from 74.6%.
The external component of the debt stock declined marginally from GH¢453.7 billion to GH¢425.3 billion, reflecting gains from improved foreign exchange reserves and restructuring agreements with external creditors.
Notably, there was a rise in the domestic component of the debt stock, increasing from GH¢307.3 billion to GH¢311.7 billion.
The decline in the total debt stock follows stringent fiscal measures and debt restructuring efforts aimed at ensuring macroeconomic stability.
Additionally, efforts to enhance revenue mobilisation and streamline public expenditure have helped contain domestic debt levels.
Although the current debt-to-GDP ratio shows signs of improvement, analysts caution that achieving long-term sustainability will require consistent fiscal discipline and structural reforms.
The government has reiterated its commitment to reducing the debt burden further through enhanced revenue generation, prudent public spending and economic reforms.
These structural adjustments are expected to align with fiscal policies and economic recovery strategies for sustained growth.
However, industry watchers urge cautious optimism, noting that external factors such as exchange rate volatility and fluctuating commodity prices could pose risks to maintaining the downward trajectory in public debt.
The reduction in debt stock is expected to bolster investor confidence and create a more favorable outlook for Ghana’s economic prospects in the coming months.
