Ghana’s public debt-to-GDP ratio for 2024 has dropped significantly to 61.8%, marking a notable decline from the peak of 80.4% recorded in 2020.
According to the Tano North Member of Parliament, Dr Gideon Boako, this reduction is a direct result of the government’s debt management strategy, which has successfully restored the country’s debt sustainability.
“With this GDP figure out, our new public debt-to-GDP ratio for 2024 now stands at 61.8%,” he stated. This development is expected to be officially announced 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%, underscoring the effectiveness of the government’s fiscal policies. Dr Boako emphasised that the strategy implemented by the New Patriotic Party (NPP) government had yielded positive results in stabilising Ghana’s economy.
“This is a massive drop in the public debt-to-GDP ratio from 80.4% in 2020. This is also below the pre-COVID-19 level when the debt-to-GDP ratio was 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 achieve the debt sustainability target of 55% ahead of the initial 2028 projection.
“This means that Ghana could reach the debt sustainability target of 55% under the IMF programme earlier than the planned 2028 target year if only the new government continues to implement the debt management strategy,” he remarked.
Despite these improvements, concerns have been raised about the accuracy of fiscal data under the new administration.
Dr Boako hinted at the possible manipulation of economic figures by the Minister for Finance to create a misleading narrative about Ghana’s economic state.
“We have also picked up intelligence about data manipulation in the fiscal outturn for 2024 as the Minister for Finance is trying hard to manufacture a narrative to support the NDC’s baseless claims of inheriting a bad economy,” he alleged, urging the government to ensure transparency in financial reporting.
