In his mid-year budget review presented to Parliament on Tuesday, Finance Minister Mohammed Amin Adam highlighted the significant increase in Ghana’s provisional central government debt, which has reached GH¢742.0 billion (US$50.9 billion) as of the end of June 2024.
This figure represents 70.6% of the country’s Gross Domestic Product (GDP).
Minister Adam explained that the 22.0% rise in public debt since the beginning of the year is primarily due to the depreciation of the Cedi and continuous disbursements from international and domestic creditors.
The current debt structure 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 debt stock, respectively.
“External debt as a percentage of GDP stands at 43.0%, while domestic debt is at 27.6%,” the Minister detailed.
These figures highlight the significant burden of external borrowing on the national economy.
The Finance Minister’s report has raised concerns among policymakers and stakeholders about the sustainability of the country’s debt levels.
With the rising debt-to-GDP ratio, there is an increased call for the government to implement robust economic policies to stabilize the national currency and curtail further borrowing.
