According to Bank of Ghana data, Ghana’s entire public debt stock was US$ 55.1 billion (GH391.9 billion) in March 2022.
The debt fell by nearly $3 billion in dollar terms in the first three months of the year, from $58.4 billion in January to $55.1 billion in March.
In Cedi terms, however, the overall debt stock climbed by nearly GH¢40 billion in the first three months of this year, from GH¢351.7 billion in January 2022 to GH¢391.9 billion in March 2022.
The debt statistic for March 2022 raises Ghana’s debt to GDP ratio to 78 percent, based on a predicted GDP of around GH¢502 billion in 2022.
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Year-on-year growth
According to Central Bank data, the debt stock increased by almost 30% year on year from March 2021 to March 2022, from GH¢304.6 billion to GH¢391.9 billion.
Domestic debt
A more detailed examination of the debt figures reveals that the component of debt secured domestically increased by GH¢8 billion from GH¢181.9 billion in January to GH¢189.9 billion in March, or nearly 38% of estimated GDP for 2022.
External debt
In the first three months of 2022, the external component of the debt grew by roughly GH¢32 billion, from GH¢169.8 billion in January to GH¢201.9 billion in March.
Impact of Cedi depreciation
The almost 15% devaluation of the cedi versus the dollar from January to March 2022 contributed significantly to the total increase in debt.
The US Dollar sold for GH¢6.02 at the end of January 2022 and GH¢7.11 at the end of March 2022, according to Central Bank data.
SOURCE: CITINEWS
