Ghana’s public debt soars to GH¢761.2 billion, each Ghanaian owes around GH¢22,076

By the end of July 2024, Ghana’s public debt had risen to GH¢761.2 billion, representing 75.7% of the nation’s GDP. This marks a significant increase compared to July 2023, when the debt stood at GH¢587.7 billion, or 70.3% of GDP.

The Bank of Ghana's latest economic report, released in September 2024, highlights a notable rise in both external and domestic debt. External debt increased to US$31.6 billion, up from US$30 billion the previous year, now accounting for 46.1% of GDP. Similarly, domestic debt surged to GH¢290.9 billion, making up 28.5% of GDP.

Ghana’s economic struggles have intensified, as demonstrated by the growing debt burden. On a per capita basis, each Ghanaian now effectively owes around GH¢22,076, emphasising the scale of the nation’s financial challenges. This worsening debt crisis is a key reason for Ghana’s continued engagement with the International Monetary Fund (IMF), as the country seeks to stabilise its economy.

With total public debt now constituting a significant share of GDP, the government faces increasing pressure to address these issues and implement strategies to revitalise the nation’s economy.

The rising public debt, now at 75.7% of Ghana's GDP, highlights an urgent need for effective fiscal management and sustainable economic policies. As the country grapples with its growing external and domestic debt, its reliance on the ongoing IMF programme underscores the critical need for reforms. The government must act swiftly to stabilise the economy, reduce the debt burden, and restore confidence in Ghana’s financial future. Without decisive action, the nation's economic trajectory is likely to face continued challenges.

Read Full Story