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Ghana’s public debt has surged by GH¢47.4 billion in the first two months of 2024, reaching a total of GH¢658.6 billion. This debt level represents 62.7% of the country’s Gross Domestic Product (GDP) as of February 2024.
The external debt alone stands at GH₵380 billion, which is 36.1% of the GDP. These figures were disclosed by the Bank of Ghana in its May 2024 Summary of Economic and Financial Data.
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The data reveals 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 rose to GH¢658.6 billion by February 2024. The rise in debt is partly due to the depreciation of the cedi against major trading currencies, which has exacerbated the debt burden.
In response to the economic challenges exacerbated by the COVID-19 pandemic, Ghana secured a $3 billion bailout from the International Monetary Fund (IMF) to stabilize its economy. The IMF has projected a gradual reduction in Ghana’s debt-to-GDP ratio over the next six years. According to its April 2024 Fiscal Monitor, the debt-to-GDP ratio is expected to decline to 69.7% by 2029.
The IMF’s projections indicate that the debt-to-GDP ratio will be 83.6% in 2024, decreasing to 80.9% in 2025, 77.9% in 2026, 74.9% in 2027, and 72.0% in 2028. The IMF has previously recognized improvements in Ghana’s fiscal economy, highlighting the government’s efforts to manage and reduce its debt burden over time.
