By The International Monetary Fund (IMF) projects a sustained decrease in Ghana’s Debt-to-Gross Domestic Product (GDP) ratio over the next six years.
In its April 2024 Fiscal Monitor, the Fund stated that Ghana’s debt-to-GDP ratio is expected to decline to 69.7% by 2029.
The projections for the intervening years are as follows: 83.6% in 2024, 80.9% in 2025, 77.9% in 2026, 74.9% in 2027, and 72.0% in 2028.
The Fund previously asserted that Ghana’s fiscal economy was showing signs of improvement.
Stephane Roudet, Mission Chief for Ghana, highlighted that the government’s policies and reforms aimed at restoring macroeconomic stability and debt sustainability, while also paving the way for stronger and more inclusive growth, are yielding positive outcomes.
“On the fiscal front, consistent with the authorities’ commitments under the IMF-supported program, the fiscal primary balance on a commitment basis improved by over 4 percentage points of GDP in 2023 and is on track to achieve a fiscal primary surplus of ½ percent of GDP in 2024. Spending has remained within budget limits, while the authorities have significantly expanded social protection programs to help mitigate the impact of the crisis on the most vulnerable. Ghana has met its non-oil revenue mobilization target, while making progress in implementing ambitious structural fiscal reforms to bolster domestic revenues, strengthen public financial and debt management, and enhance transparency”, it added.
Ghana successfully obtained a Memorandum of Understanding (MoU) from its bilateral creditors regarding debt restructuring. This followed a negotiated agreement with the bilateral creditors on the terms for restructuring the debt.
This strategic step, combined with the restructuring of domestic debt, aims to reduce costs for the country.
Ghana ended 2023 with a public debt of GH¢610bn – BoG
Ghana’s public debt reached GH¢610 billion ($52.4 billion) at the end of 2023, the Bank of Ghana has revealed in its March 2024 Summary of Economic and Financial Data.
It went up by GH¢42.7 billion between September 2023 and December 2023, after it fell by ¢14.2 billion between June 2023 and September 2023 to ¢567.3 billion ($51.0 billion).
The total public debt stock of the country is equivalent to 72.5% of Gross Domestic Product (GDP).
This suggests that the country’s debt situation has not improved despite completing the Domestic Debt Exchange Programme during the period.
While the domestic debt went up by GH¢19.1 billion, the external debt increased by GH¢23.6 billion, largely as a result of the cedi depreciation.
