You are here: HomeNews2018 08 01Article 673495

Business News of Wednesday, 1 August 2018

Source: Myjoyonline.com

Here is how much Ghana owes

The Bank of Ghana (BoG) has released its summary of economic and financial data for July 2018.

The data shows that as of May 2018, Ghana’s debt stock has risen to GHS154 billion. It also shows that stock of debts has gone up by Gh¢9 billion in three months from February 2018.

The Bank of Ghana in February this year put the public debt at GH¢145 billion based on its summary of Economic and financial data.

Impact on GDP

According to the fiscal data seen by JoyBusiness, the provisional debt stock of GH¢154 billion would translate into 63.7, per cent of GDP at the end of May 2018 compared to 66.8 per cent for the same period in May 2017.

From the data, it is clear that there has been some reduction in terms of the Debt-to-GDP.

For instance, as at the end of December 2017, the Debt-to-GDP was 69.8 per cent. This should mean the country is making some progress in moving away from the dreaded 70 per cent mark, which could result in the country being tagged as highly “Debt distress Country” or having challenges in paying our debt back on time.

However, some economists have also argued that the country is witnessing some improvement in the Debt-to-GDP ratio because the economy is expanding.

The infographic below gives details.