By: Kekeli K. Blamey
Ghana’s total public debt has decreased by GH¢46.8 billion to GH¢761.0 billion in October this year, according to the Bank of Ghana’s Summary of Financial and Economic Data.
This reduction also translates to a $4.2 billion drop in dollar terms, bringing the total to $27.9 billion.
The total debt, which is equivalent to 74.6% of Ghana’s Gross Domestic Product (GDP), saw a significant decline in its external component.
The external debt dropped by GH¢52.6 billion to GH¢453.7 billion, approximately $27.9 billion, representing 44.5% of GDP.
However, the domestic debt increased to GH¢307.3 billion, about 30.1% of GDP, driven by persistent borrowing on the treasury market.
As of February 2024, the domestic debt stood at GH¢275.8 billion.
Despite the fluctuations in debt, Ghana’s economy has maintained a steady growth, reaching GH¢1.020 trillion cedis at the end of October 2024.
The government’s fiscal operations also appear to be on track, with a deficit-to-GDP ratio of 3.9% as of July 2024.
