The landscape of Ghana’s public debt has shown its fair share of ups and downs, much like an ever-changing mountain range where one peak descends as another ascends. As of December 2024, a notable drop by GH¢15.8 billion in the total public debt was evident, bringing the debt stock to an imposing GH¢726.7 billion. This insight comes to us via the Bank of Ghana’s March 2025 Summary of Financial and Economic Data.
Reflecting on this adjustment, one might ask—what factors orchestrated this financial dance downward from the GH¢742.5 billion recorded the prior month? In an entwined world economy, fluctuations like these sometimes prompt a series of cause-and-effect scenarios. Could this be part of a broader strategy or an unexpected respite?
The narrative takes on a different hue when viewed through the lens of international currency conversions. The total public debt, pegged in dollars, told a contrasting story; it climbed to US$49.4 billion, up from US$48.3 billion in November 2024. This intricate ballet of figures illustrates that while national currencies might show one trajectory, the global benchmarks can portray another. Interestingly, Ghana’s debt in December represented about 61.8% of the country’s GDP. Does this percentage imply a healthy economic pulse, or is it a subtle warning sign to tread cautiously?
Impact of Economic Expansion on Debt Ratio
Indeed, the expansion of Ghana’s economic fabric played a crucial role in sculpting the debt-to-GDP ratio favorably, even amidst a nominal increase in the dollar terms. Diving into the specifics, external debt recorded a slight increment, touching US$28.3 billion in December 2024 from November’s US$28.0 billion. The culprit? The sighs and whispers of a depreciating Ghanaian cedi during those tumultuous times.
The tale of external debt over preceding months adds depth to our understanding. From a high of US$32.1 billion in September, it whittled down to US$28.3 billion by October. Is this reduction simply a fleeting moment of economic relief or the harbinger of a more significant trend?
Domestic Debt Sees Marginal Reduction
Turning the gaze inward, domestic debt mirrored a tale of minimal decline, settling at GH¢309.8 billion by December 2024—a figure representing 26.3% of the GDP. This dip is largely attributed to reduced yields, a reminder of domestic economic undercurrents at play. November had seen this figure slightly higher at GH¢311.4 billion—was this change a one-off adjustment or indicative of future fiscal directions?
Government’s Fiscal Performance
Shifting focus to fiscal operations, December 2024 painted a picture of management and momentum. The fiscal deficit balanced precariously at 5.2% of GDP, coupled with a primary balance recording a marginal deficit of 1.2% of GDP. How does such financial choreography impact the lives of everyday Ghanaians? Could such statistics paint a clearer picture if reframed from the eyes of those balancing household budgets and dreams?
Amidst these numeric tapestries, Ghana’s economy burgeoned to GH¢1.176 trillion as of December 2024. This figure stands tall as a testament to an economy in expansion, quietly thriving amid a sea of debt undulations. It invites one to ponder—does this denote mere survival or the dawn of a promising renaissance?
Edited By Ali Musa
Axadle Times International – Monitoring.
