Ghana’s Public Debt Declines to GHS 567.3 Billion in September 2023

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Ghana’s public debt has decreased to GHS 567.3 billion as of September 2023, reflecting a GHS 14.2 billion reduction compared to the GHS 581.5 billion recorded in June 2023. The new public debt figure represents 66.4 percent of Gross Domestic Product (GDP). Since January 2023, the public debt has increased by GHS 8.5 billion, and since September 2022, it has risen by GHS 88.5 billion. In dollar terms, the total debt stock stood at US$51.0 billion as of June 2023, with external debt accounting for GH₵326.7 billion (US$29.4 billion) and domestic debt for GH₵240.6 billion.

Key Points:

  • Ghana’s public debt has decreased to GHS 567.3 billion as of September 2023, a GHS 14.2 billion reduction from June 2023.
  • The new public debt figure represents 66.4 percent of Gross Domestic Product (GDP).
  • Since January 2023, the public debt has increased by GHS 8.5 billion, and since September 2022, it has risen by GHS 88.5 billion.
  • In dollar terms, the total debt stock stood at US$51.0 billion as of June 2023.
  • External debt accounted for GH₵326.7 billion (US$29.4 billion), while domestic debt accounted for GH₵240.6 billion.
  • Both external and domestic debts have witnessed marginal decreases since June 2023.
  • External debt fell by GHS 1.9 billion, and domestic debt declined by GH₵ 12.3 billion compared to the June 2023 figures.
  • Nominal GDP stood at GH₵854.8 billion as of September 2023, up from GH₵610.2 billion recorded in September 2022.

Analysis: The decline in Ghana’s public debt to GHS 567.3 billion as of September 2023 represents a positive development, contributing to a reduced debt-to-GDP ratio. The decrease from the June 2023 figure and the marginal declines in both external and domestic debts indicate efforts to manage and stabilize the country’s debt profile. The nominal GDP increase from GH₵610.2 billion in September 2022 to GH₵854.8 billion in September 2023 suggests economic growth, contributing to the overall improvement in debt sustainability. The government’s commitment to prudent fiscal management and debt reduction strategies may have played a role in achieving these outcomes. However, ongoing monitoring and proactive measures will be essential to maintain fiscal discipline and support sustainable economic growth in Ghana. The data provides insights into the country’s economic trajectory and the effectiveness of debt management initiatives.

CNR

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