Ghana's National Debt Soars to Over 70% of GDP, Raising Concerns

Ghana's national debt stock has reached alarming levels, standing at GH¢742 billion as of June 2024, which accounts for more than 70% of the country's Gross Domestic Product (GDP).
According to the latest data, this means that every Ghanaian, in a population of approximately 31 million, now owes about GH¢24,000 (equivalent to roughly $2,000) towards the country's total debt.
The debt stock has seen a staggering increase from GH¢122 billion during previous administrations, with the Akufo-Addo government adding nearly GH¢620 billion to Ghana's debt burden over the past several years.
Experts note that the accumulation of debt under different regimes does not necessarily indicate that they borrowed more. Other factors, such as the depreciation of the local currency and the accumulation of arrears from previous administrations, have also contributed to the growing debt stock.
"Debt accumulation is a complex issue, and it's not as simple as saying one government borrowed more than the others," said Dr. Kwasi Amoako, an economist at the University of Ghana. "Economic management, currency fluctuations, and the handling of past debts all play a significant role in the overall debt position."
Nonetheless, the ballooning debt levels have raised concerns among Ghanaians, who are grappling with the potential implications on the country's economic stability and the burden placed on individual citizens.
Economic theory suggests that borrowing and accumulating debt is not inherently bad, as public debt can be vital for financing productive investments and promoting economic growth. However, the sustainability of Ghana's debt levels remains a pressing issue that the government must address.
As the country navigates these challenging fiscal times, calls for fiscal prudence, debt management, and economic reforms have gained momentum among the Ghanaian public and various stakeholders.