Ghana’s public debt has surged to GH¢761.2 billion ($51.1 billion), now accounting for 75.7% of the country’s GDP, according to recent data from the Bank of Ghana (BoG). This marks a significant increase from GH¢633.3 billion earlier this year and GH¢587 billion in 2023.
The sharp rise in debt highlights the growing fiscal pressures Ghana faces amid economic challenges and the complexities of external debt restructuring. External debt now represents 47.1% of GDP, amounting to GH¢470.3 billion ($31.6 billion), up from 36% at the beginning of the year, as the country strives to stabilize its balance of payments. However, this is still lower than the 39.2% recorded at the same time last year.
With Ghana’s nominal GDP standing at GH¢1.02 trillion, concerns are mounting about the country’s ability to manage its debt without exacerbating economic strain. These figures will likely increase scrutiny of government fiscal policies, as both investors and international financial institutions closely watch Ghana’s pursuit of external debt relief.
The data underscores the urgent need for structural reforms to restore macroeconomic stability and reduce the risk of further debt distress, especially in light of Ghana’s external vulnerabilities.
