Ghana’s debt soars to GH¢742 billion, 70.6% of GDP-Finance Minister

Finance Minister Dr. Mohammed Amin Adam has disclosed that as of the end of June 2024, government debt totalled GH¢742.0 billion (US$50.9 billion).

According to him, this is equivalent to 70.6 percent of the country’s Gross Domestic Product (GDP).

Speaking during the 2024 mid-year budget review in parliament on July 23, he said, “This indicates an increase of 22.0 percent due to the effect of the cedi depreciation and the continuous disbursements from creditors”.

The finance minister explained that out of the total debt, GH¢452.0 billion was external debt, making up 60.9 percent, while GH¢290.0 billion was domestic debt, accounting for 39.1 percent.

“As a percentage of GDP, external and domestic debt represented 43.0 percent and 27.6 percent, respectively,” he said.

In April 2024, the International Monetary Fund (IMF) projected a consistent decline in Ghana’s Debt-to-Gross Domestic Product (GDP) ratio in the next six years.

In its April 2024 Fiscal Monitor, the IMF said Ghana’s debt-to-GDP will plummet to 69.7% in 2029.

In 2024, the debt-to-GDP ratio is estimated at 83.6%, whilst that of 2025, 2026, 2027 and 2028 are pegged at 80.9%, 77.9%, 74.9% and 72.0%.

The IMF had earlier stated that Ghana’s fiscal economy was improving.

According to Stephane Roudet, Mission Chief for Ghana, the government policies and reforms to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth are already generating positive results.