Ghana’s total public debt stock has risen by 2.7 per cent – from 68.3 per cent in July – reaching 71 per cent of Gross Domestic Product (GDP).
The new debt figure obtained at the end of September 2020, is contained in the Bank of Ghana’s November 2020 Economic and Financial Data Report.
This indicates a tremendous rise in the public debt as compared to the same period September 2019, when the debt stock stood at 59.8 per cent of GDP.
In monetary terms, Ghana’s current debt stock translates into some Ghs 273.8 billion.
Of the total amount, debts owed externally stands at Ghs 138.5 billion, representing 35.9 per cent of GDP – an increase of 5.1 per cent since September 2019.
Domestic debts on the other hand, amount to some Ghs 135.3 billion, representing 35.1 per cent of GDP – an increase of 6.1 per cent since September 2019.
Risk of debt distress (as measured by IMF-WB) and the burden of debt is high in many SSA countries
Ghana, as of June 30, 2020, and based on the most recent published data by the IMF, was listed among 28 countries in high risk of debt-distress.
The country’s debt to Gross Domestic Product (GDP) is projected to hit 76.7 per cent by the end of 2020.
Meanwhile, the country as at end-September 2020, had recorded a primary balance of negative 4.1 per cent of GDP compared to a positive primary balance of 0.1 per cent of GDP for the same period last year.
Also, Government revenues as a percentage of GDP as at end September 2020, stood at 9.4 per cent with expenditure reaching 18.4 per cent.
This imply a fiscal deficit of 9 per cent of GDP as against Government’s revised fiscal deficit target of 11.8 per cent for end-2020.
By October Ghana had gross international reserves of US$8.627.8 billion, up from US$8.093.7 billion a year earlier.
Overall balance of payments position was negative to the tune of $675.73 million, a reversal of the positive $878.87 million by that time in 2019.
Nevertheless trade surplus for the first 10 months of 2020, at $1,743.6 million, was higher than that during the corresponding period of the previous year of $1,491.6 million.
Total exports were down, from $12,981.4 million to $12,001.3 million. Revenues from cocoa and oil dropped significantly but gold receipts rose by some 10 percent on the back of a 28 percent increase in realized global market prices.
But import bill fell even faster, from $411,489.8 million to $10,257.7 million during the respective first 10 months of the last two years.
The trade balance more than offset the current account balance deficit of $1267.2 million which was smaller than last year’s $1,497.3 million. But then the capital account surplus was smaller too, at $365.5 million, down from US$2,273.2 million.
