Ghana’s Debt stock hits GH₵ 761.2bn as of July 2024; every Ghanaian owing GH₵22,076

What is Ghana’s debt stock as of July 2024 and how much does every Ghanaian owe?

Ghana’s debt stock has continued to rise and, as of July, was estimated at GH₵ 761.2 billion. This figure represents 75.7 percent of the country’s gross domestic product (GDP) as of July 2024.

The above, if distributed fairly among Ghanaians, shows that every Ghanaian is owing GH₵22,076. The dent per head of the population totaling GH₵22,076 is not even found in the bank accounts of over 90% of Ghanaians.

Debt stock hits GH₵ 761.2bn as of July 2024: Effects and challenges regarding third IMF tranche of US$360 million

As of July 2023, Ghana’s debt stood at GH₵587.7 billion and was equated to 70.3 percent of GDP. The statistics made public by the Bank of Ghana are the latest update captured in the Summary of Economic and Financial Data for September 2024.

Per the data from the Bank of Ghana, Ghana’s external component of the debt is now US$31.6 billion. It stood at US$30 billion a year ago and represented 46.1 percent of the country’s GDP. On the domestic scene, the debt of the country is GH₵290.9 billion, which is equal to 28.5 percent of the GDP.

If Ghana’s debt as of the end of July 2024 is divided by the country’s current population, every Ghanaian is estimated to owe GH₵22,076.

The country’s bailout secured from the International Monetary Fund (IMF) program totalling US$3 billion and spread out for payment in phases was expected to help deal with shortfalls and improve the economic outlook.

Ghana got the third tranche of funding of US$360 million on Monday, July 1, 2024, after the IMF’s successful review of Ghana’s performance.

Ghana under IMF support

Ghana is currently under an International Monetary Fund (IMF) program seeking a US$3 billion bailout to help in economic recovery.

The country received a third tranche of funding of US$360 million on Monday, July 1, 2024, following a successful review of Ghana’s performance by the Fund.

According to the IMF, Ghana’s performance under the program has been generally strong; however, the continued increase in debt levels is worrying.

The 2024 general election scheduled for December 7th is expected to be influenced by the economic management success and failure of the ruling NPP government.

Third review underway

The leadership of the International Monetary Fund (IMF) has started its third review of Ghana’s performance under the bailout program. If Ghana meets the expectations of the IMF key performance indicators, Ghana will be expecting another US$360 million to help manage the economy and improve it ahead of the December elections.

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Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), has already cautioned the leadership of the economy and state authorities to keep an eye on the IMF Key Performance Indicators (KPIs) to be met by Ghana for the successful disbursement of the next US$360 million. He also advised that if the KPIs are not met, it will negatively affect the third review, which is closer to the end of the year.

Dr. Addison made the call during a joint press conference with the Ministry of Finance and the IMF on July 2, 2024.