Ghana’s public debt soars at GH¢726.7b by December 2024

In 2015, the International Monetary Fund (IMF) while discussing requests for a bailout for Ghana, classified the country as “high risk of debt distress” under a new debt sustainability analyses.

At that time, the public debt stood around GH¢97 billion.

However current figures published by the Bank of Ghana shows a high figure of GH¢726.7 billion, which is $49.4 billion and constitutes 61.8 per cent of GDP.

The breakdown is as follows: GH¢416.8 billion or $28.3 billion in external debts which is 35.4 per cent of GDP and domestic debt totalling GH¢309.8 billion.

The Bank of Ghana in its recent Monetary Policy Committee report indicated that the 2024 fiscal deficit, on commitment basis, was 7.9 per cent of GDP against a target of 3.8 per cent of GDP, on the back of higher expenditures than target.

“This notwithstanding, early indications from banking sector data suggest some improvements in fiscal performance in early 2025. This, along with the commitment to fiscal consolidation presented in the 2025 budget, should support the fiscal outlook. Also, the ratio of public debt declined supported by the debt restructuring,” the Governor, Dr Johnson Asiama said. 

The country, driven by the economic crisis, occasioned among others by its debt crisis and the COVID-19 pandemic, succumbed to an IMF programme in May 2023.

Ghana and the IMF signed a $3 billion, 36-month Extended Credit Facility programme, with the first tranche of $600 million immediately disbursed, expected to restore macroeconomic stability, ensure debt sustainability, and foster higher growth.

According to the central bank, the stock of Gross International Reserves, at the end of February 2025, was $9.4 billion, enough to cover 4.2 months of imports of goods and services. This, it said, compares to the stock of $5.9 billion at the end of December 2024, equivalent to 4.0 months of imports of goods and services.

The Gross International Reserves, as defined under the IMF programme to exclude the encumbered assets and petroleum funds, increased to $6.9 billion, equivalent to  3.0 months of imports of goods and services, in February 2025, the Bank added.

By Emmanuel K Dogbevi
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