Ghana is not broke – Akufo Addo says, despite 75.7% debt-to-GDP ratio

President Nana Addo Dankwa Akufo-Addo has refuted claims that Ghana’s economy is at its worst stage.

Delivering his final State of the Nation Address in Parliament on Friday, January 3, 2025, the president stated emphatically that Ghana had enough financial resources, far from being a state on its knees.

Consequently, he criticised people painting a different picture to the world, pointing to Ghana’s economic reserves.

“Mr Speaker, Ghana is not broke, contrary to what the propagandists are saying. We are handing over a country with international reserves worth $8 billion US dollars. This is more than the 6.2 per cent billion US dollars of those international reserves my administration inherited in 2017.

“Economic growth has also returned to pre-COVID levels, with an impressive growth rate rising from 4.8 per cent in the first quarter of 2024, 7 per cent in the second quarter and 7.2 in the third quarter. It is projected that this year’s growth rate will be 6.3 per cent and by this significantly higher than the 3.4 per cent my administration inherited in 2017,” he added in his speech.

Meanwhile, Ghana’s debt stock reached GH₵761.2 billion, accounting for 75.7% of the country’s Gross Domestic Product (GDP) by July 2024.

The debt stock rose significantly compared to the previous year, increasing from GH₵587.7 billion (70.3% of GDP) to GH₵761.2 billion (75.7% of GDP) within the same period.

This was contained in the last Summary of Economic and Financial Data released by the Bank of Ghana in September 2024.

Ghana is currently engaged in an International Monetary Fund (IMF) program, aiming for a US$3 billion bailout to support economic recovery. On July 1, 2024, the country received a third tranche of funding totalling US$360 million after a successful performance review by the IMF. The Fund has indicated that Ghana’s overall performance under the program has been strong.