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Ghana’s total public debt stock decreased by GH¢24 billion, settling at GH¢736.9 billion as of November 2024, according to the latest data from the Bank of Ghana.
Despite this reduction in cedi terms, the debt rose marginally in dollar terms, from $47.9 billion to $46.8 billion between October and November 2024, due to currency fluctuations.
The decline in the debt stock has positively impacted the debt-to-GDP ratio, which now stands at 72.2%, down from 74.6%. This marks progress in addressing fiscal sustainability, a critical metric for economic stability.
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The external debt component fell slightly from GH¢453.7 billion to GH¢425.3 billion. This improvement reflects gains from foreign exchange reserves and debt restructuring agreements with external creditors.
Conversely, the domestic debt component increased from GH¢307.3 billion to GH¢311.7 billion, highlighting the government’s reliance on domestic financing.
The drop in the overall debt stock follows the implementation of stringent fiscal measures and debt restructuring initiatives aimed at stabilising the economy. Enhanced revenue mobilisation efforts and disciplined public expenditure have also contributed to containing domestic debt levels.
The government has reaffirmed its commitment to reducing Ghana’s debt burden through prudent fiscal management, economic reforms, and structural adjustments. These measures aim to boost investor confidence and support long-term economic recovery.
However, analysts urge cautious optimism, warning that external factors such as exchange rate volatility and global commodity price fluctuations could challenge the debt reduction trajectory.
The reduction in Ghana’s public debt stock signals progress in restoring macroeconomic stability and provides a positive outlook for the country’s economic prospects. Sustained efforts in fiscal discipline, coupled with structural reforms, will be crucial in achieving long-term debt sustainability.
