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BusinessDebt-to-GDP is 66% - Bawumia

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Debt-to-GDP is 66% – Bawumia

Vice President Dr Mahamudu Bawumia has noted that Ghana’s debt-to-GDP ratio as of 2023 stood at 66.4 percent.

This is marginal growth following the 76.6% recorded in 2021.

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The debt-to-GDP ratio is a measure used to assess a country’s debt burden relative to its economic output. A higher ratio suggests that the country may have difficulty servicing its debt obligations, while a lower ratio indicates a healthier fiscal position.

Addressing the nation on his vision for Ghana while speaking at the University of Professional Studies (UPSA) in Accra today said macroeconomic variable “shows that the economy is recovering from the crisis we faced.”

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Inflation has declined from 54% in January to 23% in December 2023. Economic growth is rebounding, spending is under control with the fiscal deficit as a percentage of GDP has declined from 10.8% in 2020 to 4.2% in 2023.

On the country’s exchange rate depreciation, the Vice President noted that the loss of the local currency has slowed down
sharply since February 2023.

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“Whereas the exchange rate depreciated by 30% in 2022, between February and December 2023, it only depreciated by 9%,” he added.

The International Monetary Fund (IMF) forecast a decline in Ghana’s debt-to-Gross Domestic Product (GDP) ratio from 92.4% in 2022 to 84.9% in 2023.

According to its October 2023 Fiscal Monitor, the country’s total debt-to-GDP ratio is expected to fall consistently in the next five years.

In 2024, the debt-to-GDP ratio is estimated at 81.5%, whilst that of 2025, 2026, 2027 and 2028 are pegged at 78.8%, 75.8%, 72.8% and 70.0%.

This will follow the expected external debt restructuring where the country’s debt is expected to go down.

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