Ghana's public debt reaches GH¢658.6 billion - BoG report

Recent data released by the Bank of Ghana showed that the country's public debt stock increased by GH¢46.4 billion in the first two months of 2024, reaching GH¢658.6 billion ($53.1 billion).

In terms of Gross Domestic Product, Ghana's total public debt stock now stands at 62.7 percent for the period.

The BoG's Summary of Economic and Financial Data for May 2024 indicated that the country's debt was GH¢611.2 billion at the end of 2023, which rose to GH¢626.0 billion in January 2024, and further increased to GH¢658.6 billion in February 2024.

This increase in public debt was attributed to the persistent depreciation of the cedi at a time when government borrowing on the domestic treasury bills market increased.

On the domestic debt front, the data showed an increase of GH¢18.5 billion in the first two months of 2024, representing approximately 36.1 percent of GDP.

As of February 2024, the domestic debt stood at GH¢278.7 billion, representing 36.1 percent of GDP.

Regarding external debt, it rose by GH¢28.9 billion due to the cedi's depreciation against major trading currencies during the period.

Additionally, the external component of the total public debt stock was $30.6 billion (GH¢350.3 billion) in February 2024, equivalent to 36.1 percent of GDP.

The Central Bank's Summary of Economic and Financial Data for May 2024, however, showed that government fiscal operations were on track, with a deficit-to-GDP ratio of 2.6 percent in the first quarter of 2024, compared to 1.8 percent of GDP during the same period in 2023.

Meanwhile, the primary balance showed a deficit of 1.4 percent of GDP in March 2024.

MA