The World Bank has disclosed that Ghana has made progress on debt restructuring in the last year but public debt remains unsustainable without the completion of external bilateral and commercial debt restructurings.
At the end of 2022, public debt reached 92.2% of Gross Domestic Product (about $66.5 billion), with domestic public debt at 50% of GDP and external debt at 43%.
The completion of domestic debt restructuring in September 2023 helped reduce public debt to 82.9% of GDP by the end of the year, and an agreement in principle was reached with external official creditors in January 2024 and with external commercial creditors in June 2024.
However, the Washington-based lender said Ghana remains in debt distress and remains unsustainable without the completion of external debt restructuring in line with the joint Debt Sustainability Analysis (DSA) parameters.
In its 2024 Ghana Economic Update, the World Bank said that though a firm monetary policy tamed high inflation last year and allowed a stable exchange rate, some inflation pressures have reemerged in 2024.
