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Ghana’s public debt surged by GH¢47.4 billion in the first two months of 2024, reaching a total of GH¢658.6 billion. This represents 62.7% of the country’s Gross Domestic Product (GDP) as of February 2024. The external debt component is GH₵380 billion, equating to 36.1% of GDP.
These statistics were released by the Bank of Ghana in its May 2024 Summary of Economic and Financial Data. The report indicated that Ghana’s debt was GH¢611.2 billion at the end of 2023. It increased to GH¢626 billion in January 2024 and further to GH¢658.6 billion by February 2024.
The rise in debt is partly due to the depreciation of the cedi against major international currencies.
In response to the severe economic impact of the COVID-19 pandemic, Ghana sought a $3 billion bailout from the International Monetary Fund (IMF) to stabilize its economy.
The IMF projects a gradual reduction in Ghana’s debt-to-GDP ratio over the next six years. According to its April 2024 Fiscal Monitor, the ratio is expected to decrease from 83.6% in 2024 to 69.7% by 2029, with intermediate targets of 80.9% in 2025, 77.9% in 2026, 74.9% in 2027, and 72.0% in 2028.
The IMF had earlier noted improvements in Ghana’s fiscal economy, indicating a positive outlook for the country’s financial stability.
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