Ghana’s public debt jumped by GH¢15.8 billion in July to reach GH¢628.8 billion (about $59.9 billion), ending three months of declines, according to the Bank of Ghana’s latest economic data.
The figure equals 44.9% of the country’s Gross Domestic Product (GDP), highlighting ongoing challenges despite earlier currency boosts.
This rise follows a drop to GH¢613 billion in June, driven by the cedi’s strong appreciation against the U.S. dollar earlier in the year.2631d0 Compared to GH¢769.4 billion in March, the debt path shows volatility tied to exchange rate shifts.3b4481
Debt Breakdown
External Debt: Stable at $29.0 billion, or 21.8% of GDP—nearly unchanged from June’s $29.1 billion.01ced6
Domestic Debt: Increased to GH¢323.7 billion (23.1% of GDP) from GH¢312.7 billion the prior month, signaling higher local borrowing.bb7ac9
On the fiscal front, July saw a 1.4% deficit-to-GDP ratio, with a 0.7% primary surplus, showing some control but persistent pressures from domestic financing.
Cedi’s Rally Fades
The cedi’s earlier surge has lost steam, halving its mid-year momentum due to market strains. Year-to-date, it has strengthened 21% against the dollar as of September, down from a 42.6% peak in June.0d27de It now trades at about GH¢12.15 per dollar on the interbank market, a 20% slide from June highs that once ranked it among the world’s top performers.81bab6 Forecasts suggest further weakening, potentially to GH¢13.26 by year-end.
Against other currencies:
Up 6.9% vs. the Euro at GH¢14.23 (vs. 25.6% gain in June).
Up 11.8% vs. the British Pound at GH¢16.45 (vs. 30.3% in June).
Bank of Ghana Governor Dr. Johnson Asiama linked the slowdown to seasonal trade demands and softer remittances, but noted the effects remain manageable. “Remittances have not been as strong as in previous periods. However, the impact on the cedi’s performance has been contained,” he said during the Monetary Policy Committee meeting on September 15.
Looking ahead, the cedi’s path in Q4 will depend on imports, remittances, and policy tweaks, amid global uncertainties.
