Coronavirus expenditure pushes Ghana’s external debt to US$24.4 billion

The latest Bank of Ghana’s Summary of Economic and Financial Data has pegged Ghana’s external debt at US$24.4 billion (GH¢139.6 billion).

This component is about 36.2 percent debt to Gross Domestics Product (GDP).

The domestic debt was however estimated at ¢147.3 billion, which represents about 38.2% of GDP.

Ghana’s total public debt stock jumped from GH¢274.1 billion in September 2020 to GH¢286.9 billion in November 2020.

The nation added ¢12.8 billion to its public debt stock, the central bank’s data revealed.

This was largely from COVID-19 expenditure in a form of stimulus packages to households and businesses.

On the other hand, the financial sector resolution bond still remained unchanged at GH¢15.4 billion, about 4.0% of GDP.

The Bretton Wood institution; the International Monetary Fund had forecast a 76.7% debt-to-GDP ratio for Ghana in 2020.

It, however, said in its Sub Saharan Africa Regional Economic Outlook report that the debt-to-GDP ratio will, however, drop slightly to 74.7 percent of GDP in 2021.

Fitch Solutions forecasts ease in Ghana’s interest rates

The research arm of ratings agency, Fitch, earlier forecast an ease in interest rates in the country, from early next year.

It linked that to a further fall in the country’s inflation rate next year, which then will remain in the single-digit bracket. It is projecting end-year inflation of 8.5% for 2021.