By the end of July 2024, Ghana’s public debt had increased to GH¢761.2 billion, which accounts for 75.7% of the country's GDP. This represents a considerable rise from July 2023, when the debt was GH¢587.7 billion, or 70.3% of GDP.
The Bank of Ghana's most recent economic report, published in September 2024, reveals a significant uptick in both external and domestic debt.
External debt climbed to US$31.6 billion, up from US$30 billion the previous year, now making up 46.1% of GDP. Likewise, domestic debt soared to GH¢290.9 billion, representing 28.5% of GDP.
Ghana's economic challenges are becoming more pronounced, as reflected in the increasing debt burden. On a per capita basis, each Ghanaian now owes approximately GH¢22,076, highlighting the extent of the nation’s financial difficulties.
This escalating debt crisis is a primary reason for Ghana's ongoing collaboration with the International Monetary Fund (IMF) as the country works to stabilize its economy.
With public debt now representing a substantial portion of GDP, the government is under mounting pressure to confront these issues and implement measures to revitalize the economy.
The rise in public debt, currently at 75.7% of GDP, underscores the urgent need for sound fiscal management and sustainable economic policies. As the nation navigates its growing external and domestic debt, its reliance on the IMF program emphasizes the critical importance of reform.
The government must take prompt action to stabilize the economy, lessen the debt burden, and rebuild confidence in Ghana’s financial future. Without decisive interventions, the country's economic prospects are likely to remain precarious.
Credit:Pulse.
