Ghana is currently facing a significant economic challenge as its debt stock has surged to GH₵ 761.2 billion, which is a staggering 75.7 percent of the country’s Gross Domestic Product (GDP) as of July 2024. This represents a notable increase compared to the previous year when the debt was at GH₵587.7 billion, equivalent to 70.3 percent of the GDP. The latest Summary of Economic and Financial Data released by the Bank of Ghana in September 2024 highlighted these concerning figures.
In particular, the external component of Ghana’s debt has risen to US$31.6 billion, up from US$30 billion in the same period last year, constituting 46.1 percent of the GDP. On the other hand, the domestic debt stands at GH₵290.9 billion, representing 28.5 percent of the GDP. This means that every Ghanaian citizen is estimated to owe approximately GH₵22,076 by the end of July 2024, underscoring the magnitude of the debt burden on individuals.
To address these economic challenges, Ghana has sought assistance from the International Monetary Fund (IMF) through a US$3 billion bailout program aimed at facilitating economic recovery. The country recently received a third tranche of funding amounting to US$360 million following a successful performance review by the IMF. Governor of the Bank of Ghana, Dr. Ernest Addison, emphasized the importance of meeting the program’s standards to ensure the release of further funding and sustain the progress made so far.
