Ghana’s Debt Now GH¢127bn

Ghana’s total public debt stock reached GH¢127.1 billion at the end of March 2017, representing 62.5 percent of Gross Domestic Product (GDP) up from GH¢122.6 billion at the end of 2016, representing 73.3 percent of GDP.

Per the aforementioned figures, the country incurred a debt of GH¢4.5 billion from January 2016 to March 2017.

Out of the total debt stock, domestic debt incurred was GH¢55.2 billion at the end of March 2017, representing 27.2 percent of GDP from GH¢53.4 billion recorded at the end of 2016, representing 31.9 percent of GDP.

External debt increased from GH¢69.2 billion at the end of December 2016, representing 41.3 percent of GDP to GH¢71.9 billion, representing 35.3 percent of GDP.

External Sector Development
Dr. Ernest Addison, Governor of the Bank of Ghana (BoG), who was addressing his maiden MPC meeting on Monday, said developments in the external sector point to significant recovery in exports over the first four months of 2017 on the back of increased production volumes and prices of gold and crude oil.

“This, together with lower imports, resulted in a trade surplus estimated at 2.5 percent of GDP, compared to a deficit of 2.2 percent recorded in same period of last year,” he said.

Dr. Addison said the volatility in the foreign exchange market observed at the last MPC meeting has eased significantly, supported by improved foreign exchange liquidity conditions and the out-turn in the trade balance, with a more positive outlook based on significant expected inflows.

“Cumulatively, the Ghana Cedi has depreciated by 1.0 percent against the US dollar in the year to 18th May 2017 compared with 3.5 percent reported at the last MPC round,” he added.

Gross Reserves
Dr. Addison said Gross International Reserves increased to $6.4 billion, equivalent to 3.7 months of import cover at the end of April 2017 from $4.9 billion (2.8 months of import cover) at end-2016.

By Cephas Larbi
[email protected]