Ghana’s total stock of public debt rose by 3.5 billion yen in two months to 335.9 billion yen ($ 57.9 billion) at the end of July 2021, the latest data summary revealed. Economic and Financial Affairs of the Bank of Ghana.
This is equivalent to 76.4% of gross domestic product.
However, the rate of increase has slowed, compared to the 27.8 billion euros in fresh funds added in April and May 2021.
The government had indicated in the Issuance Schedule in July 2021 that its borrowing would slow in the third quarter of this year [July 2021 to September 2021] because it is planned to borrow less than a billion cedi for the whole of the three months. So many will wait if this is reflected in the figures for August and September 2021 when they are released later.
As of May 2021, the country’s total public debt stock stood at 332.4 billion yen, or $ 57.9 billion, or about 75.7 percent of gross domestic product.
According to data from the Bank of Ghana, domestic debt rose to 173.9 billion yen in July 2021, from 170.8 billion yen in May 2021. This is equivalent to 39.5% of GDP.
It is important to note that the financial sector’s resolution obligation was reduced to 14.9 billion yen in July 2021, from 15.2 billion yen in May 2021. This is equivalent to 3.4% of GDP.
For the external debt, it rather went from 100 million dollars in May 2021 to 28 billion dollars in July 2021. This represents about 37.0% of the GDP.
Ghana’s economy grew 3.9% in Q2 2021
Ghana’s economy grew 3.9 percent in the second quarter of this year, according to provisional figures from the Ghana Statistical Service.
During the same period last year that Covid-19 emerged, the gross domestic product (GDP) growth rate was -5.7%.
However, the growth rate of non-oil and gas GDP (non-oil GDP) for the second quarter of 2021 was 5.2%, compared to a growth rate of -5.8% recorded in the same period last year.
According to the figures, the increase in the growth rate of gross domestic product (GDP) was driven by a strong recovery in the service and agriculture sectors.
The sub-sectors of health and social work (20.75%), information and communication technologies (20%), hotels and restaurants (18.7%) as well as fishing (12.7%) experienced significant growth.
Promising economic outlook but uncertainty persists – IMF
The International Monetary Fund, in its latest assessment of the Ghanaian economy, said the Ghanaian economy still faces significant uncertainty in the coming months despite the bright economic outlook.
This follows a gradual recovery from COVID-19 shocks that severely affected the economy last year.
“Ghana has been hit hard by the COVID-19 pandemic. The government’s response has helped contain the pandemic and support the economy, but at the cost of a record budget deficit. The economic outlook is improving, although risks remain, especially given the evolution of the pandemic and the growing vulnerability of debt, ”the IMF Executive Board consultation under the article said. IV with Ghana.