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Ghana's Public Debt Analysis: Navigating Through Fiscal Challenges in 2023

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Examine the comprehensive analysis of Ghana’s public debt situation in 2023, exploring the surge in debt stock, the GDP ratio implications, and insights into domestic vs. external debt components.

Keywords: Ghana Public Debt 2023, Debt to GDP Ratio, Ghana Debt Analysis, Fiscal Policy Ghana, Economic Growth Ghana


As 2023 drew to a close, the state of Ghana's public debt continued to command attention from policymakers, investors, and international financial bodies. The year concluded with a nuanced picture of the country's fiscal health, marked by a substantial rise in total public debt in local currency terms, juxtaposed with a slight decline when assessed in US dollars. This analysis provides a granular look into the numbers that define Ghana's current economic scenario.

Ghana's Public Debt Analysis: Navigating Through Fiscal Challenges in 2023
Ghana's Public Debt Analysis: Navigating Through Fiscal Challenges in 2023

A Surge in Public Debt

By year-end 2023, Ghana's total public debt had escalated to an alarming GH¢610 billion, marking a significant 37% increase from the GH¢446 billion recorded at the end of 2022. This leap paints a stark portrait of the fiscal challenges that the nation faces amidst efforts to stimulate growth and manage its financial obligations.

A Dip in Dollar Terms

Interestingly, when converted to US dollars, the total public debt slightly decreased by 2%, settling at approximately $52.4 billion, compared to $53.6 billion the previous year. This decrease could reflect a combination of factors including exchange rate dynamics, debt repayments, and revaluation of existing debt. Such metrics are vital for international stakeholders who monitor debt sustainability in dollar terms.

Understanding Debt Composition

Dissecting the composition of the debt reveals that external debt holds the lion's share at 57% (GH¢350.3 billion), while domestic debt accounts for 43% (GH¢259.7 billion). This split underscores Ghana's reliance on external financing and highlights potential vulnerabilities to global financial volatility.

The Debt to GDP Puzzle

A critical indicator of economic health, the debt to GDP ratio for Ghana stood at 72.5% in 2023. This figure, though substantial, is instrumental for assessing the country's borrowing limits and gauging its ability to service debt without hindering economic development.

Decoding the Debt Trend

An overview of Ghana's public debt over the last decade reveals a complex story of fiscal policy and economic management. Since 2013, the debt in USD has been on an upward trajectory with some year-on-year fluctuations. Notably, the graph indicates a marginal reduction in public debt from 2022 to 2023, suggesting the impact of policy measures aimed at debt containment and restructuring.

The Way Forward

The fiscal landscape of Ghana, as it stands at the end of 2023, poses both challenges and opportunities. On one hand, the rising debt stock signals the need for stringent fiscal discipline and robust economic planning. On the other, the slight improvement in the dollar-denominated debt metric could indicate early successes in the country's debt management strategies.

As we forge into 2024, the Ghanaian government's commitment to economic reforms, alongside cooperation with international financial institutions, will be paramount. The goal remains clear: to achieve a sustainable debt pathway that supports economic resilience and growth, while ensuring fiscal stability.


Ghana's debt dynamics are a delicate dance between domestic economic policies and international financial trends. With the world's eyes on Ghana, it remains to be seen how the country navigates its fiscal roadmap in the coming years. The insights from 2023 will undoubtedly serve as critical lessons for crafting future strategies that align with Ghana's vision of sustainable economic prosperity.

Bernard Obeng Boateng

Lead Trainer | Finex Skills Hub +233244782356

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