According to the World Bank, Ghana’s public debt stock has now surpassed the 80 percent of GDP mark, putting the country in a tighter spot in terms of financing and interest payments.
In its January 2022 Monetary Policy Report, the Bank of Ghana stated that the stock of public debt was equivalent to 78.4 percent of GDP at the end of 2021, up from 76.1 percent of GDP at the end of 2020. In fact, as of November 2021, the country had borrowed approximately $344.8 billion.
However, World Bank Country Director Pierre Laporte, speaking at the One Ghana Movement lecture, stated that the situation may have changed now because Ghana continues to borrow.
“We know that the data is close to 80% of GDP. Now as we speak, it might have exceeded.”
According to the World Bank, Ghana’s public debt stock has now surpassed the 80 percent of GDP mark, putting the country in a tighter spot in terms of financing and interest payments.
In its January 2022 Monetary Policy Report, the Bank of Ghana stated that the stock of public debt was equivalent to 78.4 percent of GDP at the end of 2021, up from 76.1 percent of GDP at the end of 2020. In fact, as of November 2021, the country had borrowed approximately $344.8 billion.
However, World Bank Country Director Pierre Laporte, speaking at the One Ghana Movement lecture, stated that the situation may have changed now because Ghana continues to borrow.
“We know that the data is close to 80% of GDP. now as we speak, it might have exceeded.”
“Unfortunately, with COVID-19, the fiscal deficit [9.7 percent in December 2021] must be reduced urgently.” Inflation must also be reduced. This is an interesting discussion, and we must recognize the situation on the ground,” Mr. Laporte stated.
He went on to say that the country is in a “very difficult situation,” which “some of the panel has acknowledged.” It’s referred to as a crisis. We can describe it in a variety of ways.”
“It’s a very serious situation, and we haven’t hidden it at the World Bank.” When we met with the Minister [Ken Ofori-Ata], all of the finance officials, and the Head of State [President Akufo-Addo]. The situation is extremely difficult right now, and Ghana faces a difficult road ahead to re-establish macro-sustainability.
