By Emmanuel Amoah
Accra, July 23, 2024 – Ghana’s total debt stock has ballooned to a staggering GH¢742 billion (US$50.9 billion) as of June 2024, according to Finance Minister Dr. Mohammed Amin Adam. This alarming figure represents 70.6% of the country’s Gross Domestic Product (GDP), sparking concerns about the nation’s financial sustainability.
The total debt stock comprises GH¢452.0 billion in external debt and GH¢290.0 billion in domestic debt, accounting for 60.9% and 39.1% of the total, respectively. As a percentage of GDP, external debt stands at 43.0%, while domestic debt represents 27.6%.
The Finance Minister attributed the 22% increase in debt to the depreciation of the cedi and continuous disbursements from creditors. This trend raises concerns about Ghana’s ability to manage its debt and maintain economic stability.
The high debt-to-GDP ratio poses significant risks to Ghana’s economic growth, making it challenging for the government to invest in essential public services and infrastructure projects. The situation demands urgent attention and strategic measures to mitigate the debt burden and ensure a sustainable fiscal future.
Ghana’s escalating debt crisis requires swift and effective action from the government to prevent long-term economic damage. By addressing the root causes and implementing prudent fiscal policies, Ghana can work towards reducing its debt burden and promoting economic prosperity
