Ghana’s public debt has surged to GH¢761.2 billion ($51.1 billion), representing 75.7 percent of the country’s GDP, according to the latest data from the Bank of Ghana (BoG).
With a population of 33.48 million, this equates to an average debt burden of GH¢22,735.96 per citizen.
This marks a sharp increase from the GH¢633.3 billion recorded earlier this year and the GH¢587 billion reported in 2023, underscoring the mounting fiscal pressures Ghana faces as it navigates economic challenges and embarks on a complex external debt restructuring program.
External debt alone now accounts for 47.1% of GDP, amounting to GH¢470.3 billion ($31.6 billion), up from 36% at the beginning of the year. This rise reflects the country’s efforts to stabilize its balance of payments, although the figure remains below the 39.2% recorded during the same period last year.
With Ghana’s nominal GDP estimated at GH¢1.02 trillion, concerns are growing over the country’s ability to manage its soaring debt without exacerbating its economic difficulties. These figures are expected to intensify scrutiny of the government’s fiscal policies, as investors and global financial institutions continue to monitor Ghana’s pursuit of debt relief from external creditors.
The surge in public debt highlights the urgent need for structural reforms to restore macroeconomic stability and prevent further debt distress, especially given Ghana’s vulnerability to external shocks.
Last month, Ghana took a significant step by signing a memorandum of understanding (MoU) with its bilateral creditors, including China and France, to restructure $5.4 billion of its debt. This agreement is crucial for unlocking $360 million from the International Monetary Fund (IMF) as part of Ghana’s $3 billion bailout program, which is expected to be finalized next month.
Ghana defaulted on most of its $30 billion external debt during the pandemic, prompting the IMF to declare the country’s debt unsustainable. The IMF’s goal is to reduce Ghana’s public debt-to-GDP ratio from 88.1% in 2022 to 55% by 2028.