Ghana’s public debt-to-GDP ratio for 2024 has significantly dropped to 61.8%, marking a notable decrease from the peak of 80.4% recorded in 2020.
According to Dr. Gideon Boako, the Member of Parliament for Tano North, this reduction is a direct result of the government’s debt management strategy, which has played a crucial role in restoring the country’s debt sustainability.
“With this GDP figure now available, our new public debt-to-GDP ratio for 2024 stands at 61.8%,” Dr. Boako stated. This development is expected to be officially confirmed by the Finance Minister in the upcoming budget presentation.
The latest debt ratio is also lower than the pre-COVID-19 level of 65.7%, highlighting the effectiveness of the government’s fiscal policies. Dr. Boako stressed that the strategy implemented by the New Patriotic Party (NPP) government had brought positive results in stabilising Ghana’s economy.
“This is a massive drop in the public debt-to-GDP ratio from 80.4% in 2020. It is also below the pre-COVID-19 level when the debt-to-GDP ratio stood at 65.7%,” he added.
The reduction in debt has significant implications for Ghana’s financial outlook under the International Monetary Fund (IMF) programme. Dr. Boako expressed optimism that Ghana could meet the debt sustainability target of 55% ahead of the initial 2028 projection.
“This means that Ghana could achieve the debt sustainability target of 55% under the IMF programme earlier than the planned 2028 target, provided the new government continues to implement the debt management strategy,” he remarked.
Despite these improvements, concerns have been raised regarding the accuracy of fiscal data under the new administration.
Dr. Boako suggested that the Finance Minister may be manipulating economic figures to create a misleading narrative about Ghana’s economic state.
“We have also received intelligence suggesting data manipulation in the fiscal outturn for 2024, as the Minister for Finance is trying hard to manufacture a narrative that supports the NDC’s baseless claims of inheriting a bad economy,” he alleged, urging the government to ensure transparency in financial reporting.