• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Investors worried over Ghana’s high public debt

4 years ago
in Business, Economy, Editor's pick, highlights, Home, home-news, latest News
2 min read
0 0
0
Fitch Solutions - norvanreports

Fitch Solutions - norvanreports

133
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Investors worried over Ghana’s high public debt

The continuous rise in Ghana’s high levels of public debt remains a concern for investors and this may not change in the years ahead.

In Fitch Solutions 4th Quarter 2021 Country Report, a sustained fiscal deficit – albeit a moderately narrowing one – will see the country’s debt stock continue to rise over the coming years. However, as a proportion of Gross Domestic Product, it should stabilise this year, and then gradually reduce in the medium to long term.

“We are confident that Ghana will see somewhat narrower fiscal deficits and slower growth in public borrowing in the medium-to-long term. This will bring the debt burden down somewhat as a percentage of GDP relative to the early 2020”.

“While a large debt load in itself is not a direct threat to financial stability, we do not rule out the debt load causing some problems over the long term due to the high interest payments the debt entails”, it further said.

Expenditure remains High

The report revealed that expenditure will remain elevated in the coming months, and rise from 24.7% of GDP in 2020 to 25.6% (114.6bn) in 2021.

RelatedPosts

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions

CID Recovers 43 Stolen Luxury Vehicles Smuggled into Ghana

2025 Mid-Year Economic Review: Fiscal Discipline is a Necessary Pain

Public sector salaries and benefits will remain the largest non-interest expenditure item, followed by grants to other government units. The government expects the public sector wage to rise by 7.2% to 30.3bn in 2021.

However, Fitch Solutions anticipate the growing political pressure for larger pay increases as evidenced by threats in late July of nationwide strike action by university staff over pay demands, to result in higher-than expected expenditure.

The budget also includes funding for the second phase of the government’s Ghana CARES ‘Obaatan Pa’ coronavirus support and recovery scheme, which includes funding to develop public healthcare capacity, procure vaccines, and provide support for local communities and businesses.

These measures will come at the expense of general procurement expenditure, and capital expenditure (capex), funding for which will both be trimmed in 2021. Capex is likely to fall from 12.1% of total expenditure to 10.2% in 2021.

Meanwwhile according to Fitch Solutions said the budget deficit will narrow further in 2022, albeit to a still-wide 7.6% of GDP.

“We expect that as economic conditions normalise further in 2022, revenues will continue to recover and rise to 15.9% of GDP. Expenditure growth will moderate – in line with the government’s medium-term fiscal consolidation objectives – and consequently, we forecast total spending falling as a proportion of GDP to 23.5%”.

Source: Fitch Solutions
Via: Norvanreports
Tags: Bank of Ghana (BoG)BOGCovid-19COVID-19 pandemicFitch SolutionsghanaIMFInvestors worried over Ghana’s high public debtNigeriaWorld Bank
No Result
View All Result

Highlights

Ledecky’s Heroics Highlight Underwhelming US Campaign at World Aquatics Championships

CAF Establishes New Infrastructure Department to Enhance Stadium Development Across Africa

Bibiani Gold Stars Set to Begin GPL Title Defence Against Bechem United as Fixtures for 2025/26 Season Are Released

Gov’t Increases Producer Price of Cocoa to GHS 51,660 per Tonne for 2025/2026 Season

Value of Mobile Money Transactions Hit GHS 323.2bn in June

Alex Mould Questions BoG’s 25% Policy Rate Amid Ample Market Liquidity and Falling Inflation

Trending

Business

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions

August 4, 2025

Nigeria Hits Panic Button as West Africa Logs $2.1bn in Suspicious Crypto Transactions The increase in questionable...

CID Recovers 43 Stolen Luxury Vehicles Smuggled into Ghana

August 4, 2025

2025 Mid-Year Economic Review: Fiscal Discipline is a Necessary Pain

August 4, 2025

Ledecky’s Heroics Highlight Underwhelming US Campaign at World Aquatics Championships

August 4, 2025

CAF Establishes New Infrastructure Department to Enhance Stadium Development Across Africa

August 4, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.