Ghana’s debt to Gross Domestic Product (GDP) ratio is expected to reach 84.6 percent in 2022, according to the International Monetary Fund (IMF).
According to the country’s April 2022 Fiscal Monitor report, the country’s overall debt was assessed at 81.8 percent of GDP in 2021, higher than the Bank of Ghana’s forecast of 80.1 percent, or roughly 351.8 billion.
The country’s debt-to-GDP ratio would rise from 2022 to 88.4 percent in 2026, before decreasing to 87.4 percent in 2027, according to the IMF.
However, in 2022 and 2023, it will have a debt-to-GDP ratio of 84 percent, before increasing to 85 percent and 86 percent in 2024 and 2025, respectively.
Unless the government steps quickly to shore up revenue, which the IMF sees as promising in the future, rising debt may constrain government financing and, as a result, capital investment.
The government would also have to step up its expenditure rationalization effort to guarantee that projects are cost-effective and that systemic leaks are addressed.
Ghana’s tax revenue to GDP ratio is expected to rise to 16.5 percent in 2022, up from 14.7 percent in 2021, according to the Fund. This will be a significant improvement over the rates seen in the previous ten years.
However, the country’s tax-to-GDP ratio will drop to 16 percent and 16.2 percent in 2023 and 2024, respectively.
Ghana’s public debt reached 351 billion dollars in December 2021.
Ghana’s national debt stock increased to 351.8 billion in December 2021, up from 344.5 billion in November 2021, accounting for around 80.1 percent of GDP (GDP).
In December 2021, the Bank of Ghana reported that over 730 million new loans were added to the total public debt portfolio.
Domestic debt increased to 181.8 billion in December 2021, up from 179.4 billion in November 2021, according to the numbers. This equates to 41.4 percent of GDP.
In addition, the external component of the total public debt increased to $28.3 billion (170.0 billion) in November 2021, up from $27.9 billion. Between October and November 2021, however, it remained unchanged.
The external debt-to-GDP ratio, on the other hand, is comparable to 38.7% of GDP.