Ghana’s public debt climbs to GH¢761.2bn, reaching 75.7% of GDP

Ghana’s public debt has surged to GH¢761.2 billion ($51.1 billion), accounting for 75.7 percent of GDP, according to the latest Bank of Ghana (BoG) data.

This marks a sharp rise from GH¢633.3 billion recorded earlier this year and GH¢587 billion in 2023.

The escalating debt underscores growing fiscal pressures as Ghana navigates economic challenges and a complex external debt restructuring.

External debt alone now stands at 47.1% of GDP (GH¢470.3 billion or $31.6 billion), up from 36% at the start of the year, reflecting ongoing efforts to stabilize the balance of payments.

However, this remains below the 39.2% recorded at the same time last year.

With Ghana’s nominal GDP at GH¢1.02 trillion, concerns mount over the nation’s ability to manage its debt without exacerbating economic strain.

These figures are likely to intensify scrutiny of government fiscal policies, as investors and global financial institutions closely monitor Ghana’s pursuit of debt relief from external creditors.

The data highlights the critical need for structural reforms to restore macroeconomic stability and minimize the risk of further debt distress, especially given external vulnerabilities.

Source: Citinewsroom.com