Ghana’s Public Debt Increases by GHC46.4 Billion in 2 Months, Reaching GHC658.6 Billion

By Majesty 2 Min Read

According to figures from the Bank of Ghana, Ghana’s national debt climbed by GH¢46.4 billion in the first two months of 2024, reaching GH¢658.6 billion ($53.1 billion). 

The entire amount of public debt in the nation is equal to 62.7% of GDP (gross domestic product). The debt of the nation, which was at GH¢611.2 billion at the end of 2023, rose to GH¢626.0 billion in January 2024 and then to GH¢658.6 billion in February 2024, according to the Central Bank’s May 2024 Summary of Economic and Financial Data. 

The weakening of the cedi and greater government borrowing on the domestic market were blamed for the increase in state debt. 

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The depreciation of the cedi was the main cause of the GH¢28.9 billion increase in external debt during the first two months of 2024, while domestic debt increased by GH¢18.5 billion. 

According to figures from the Central Bank, as of February 2024, the total state debt’s external component was $30.6 billion (GH¢350.3 billion), or 36.1% of GDP. In February 2024, the amount of domestic debt was GH¢278.7 billion, or roughly 36.1% of GDP. 

The government’s budgetary operations were also shown to be on track, according to the report, with the deficit-to-GDP ratio in the first quarter of 2024 standing at 2.6% as opposed to 1.8% of GDP in the same time the previous year. 

Ghana's Public Debt Increases by GHC46.4 Billion in 2 Months, Reaching GHC658.6 Billion

Furthermore, in March 2024, the primary balance showed a 1.4% GDP deficit. Ghana’s economic problems forced it to stop paying interest on debts to its foreign creditors in December 2022. The nation then got a Memorandum of Understanding for the restructuring of a part of its external debt with its bilateral creditors. 

Ghana is currently in talks with bondholders after concluding a settlement with the bilateral creditors in January 2024.

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