The International Monetary Fund (IMF) is projecting that Ghana\u2019s Debt to GDP Ratio will increase further to 98.7% by the end of 2023.<\/p>\n\n\n\n
This was captured in its Fiscal Outlook Report released at the Annual IMF\/World Bank Spring Meetings in Washington DC USA.<\/p>\n\n\n\n
Ghana recently undertook a Domestic Debt Exchange Programme (DDEP) to reduce the country\u2019s debt stock.<\/p>\n\n\n\n
The IMF in the report also forecast the Debt-to-GDP Ratio to reduce marginally to reach 92.8% in 2024.<\/p>\n\n\n\n
Launching the report, the Director of Fiscal Affairs at the IMF, Vitor Gaspar advised the government of Ghana to ensure that fiscal policy is consistent with monetary policy to restore price and financial stability, while supporting the most vulnerable.<\/p>\n\n\n\n
\u201cAbrupt changes in financial conditions also call for fiscal restraint to tackle fiscal vulnerabilities. To that end, governments will need to give greater priority to rebuilding fiscal buffers by developing credible risk-based fiscal frameworks that promote\u201d, Mr. Gasper said.<\/p>\n\n\n\n
Ghana\u2019s debt situation and the IMF Report<\/strong><\/p>\n\n\n\n The March 2023 Bank of Ghana\u2019s Economic and Financial Data report showed that Ghana\u2019s Total Debt Stock ending November 2022 stood at \u00a2575 billion, representing 93.5% of GDP.<\/p>\n\n\n\n However, based on the Gross Debt Levels projection, that could be going up by about 5% for 2023.<\/p>\n\n\n\n Some analysts have stated that the current debt restructuring by government may impact on the debt numbers by the end of 2023.<\/p>\n\n\n\n The Finance Ministry in its Debt Strategy Paper had indicated that the Domestic Debt Exchange Programme will end up restructuring about \u00a2138 billion worth of bonds.<\/p>\n\n\n\n Classification of Ghana\u2019s Economy<\/strong><\/p>\n\n\n\n The IMF in the Fiscal Monitor Report also classified Ghana\u2019s economy as Low Income Developing Country.\u00a0<\/p>\n\n\n\n The classification comes after some reports stated that Ghana has been categorised as \u201cHighly Indebted Poor Country\u201d<\/p>\n\n\n\n Value of Ghana\u2019s Economy and the Debt Ratio<\/strong><\/p>\n\n\n\n The Bank of Ghana in its Summary of Economic and Financial Data report in March 2023 pegged the value of the country\u2019s debt as of December 2023 at \u00a2615.8 billon.<\/p>\n\n\n\n The total debt stock ending November 2022 was pegged at \u00a2575.7 billion.<\/p>\n\n\n\n Government was hoping to use the DDEP to restructure about \u00a2137 billion of. <\/p>\n\n\n\n However, only \u00a298 billion worth of the bonds were tendered for the debt restructuring programme.<\/p>\n\n\n\n Government is also seeking to restructure or possibly seek debt cancelation of more than $5 billion of debt owed to the Paris Club Members.<\/p>\n\n\n\n IMF on Ghana\u2019s Economic Projection for 2023<\/strong><\/p>\n\n\n\n The IMF is projecting that Ghana\u2019s Gross Domestic Product (GDP) growth rate for 2023 will slow to 1.6% <\/p>\n\n\n\n This is lower than Ghana\u2019s forecast of 2.8% captured in the 2023 Budget.<\/p>\n\n\n\n The IMF in its 2022 World Economic Outlook Report projected Ghana\u2019s growth rate for 2023 at 3.6%.<\/p>\n\n\n\n The IMF in the report linked the slowdown to some global economic challenges, such as the COVID-19, Russia-Ukraine War, Energy issues and its impact on Ghana\u2019s economy for this year.<\/p>\n\n\n\n The IMF was however upbeat about the economy picking up in 2024.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" The International Monetary Fund (IMF) is projecting that Ghana\u2019s Debt to GDP Ratio will increase further to 98.7% by the end of 2023. This was captured in its Fiscal Outlook Report released at the Annual IMF\/World Bank Spring Meetings in Washington DC USA. Ghana recently undertook a Domestic Debt Exchange Programme (DDEP) to reduce the […]<\/p>\n","protected":false},"author":8,"featured_media":31156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_post_source_name":"","_post_source_url":"","footnotes":""},"categories":[61,43,1],"tags":[7358,5249,12758,7703,5222,5200,7396,6725,8857,8858,5196,5494,12354,9643,1237,192,2264,4634,6543,5060,12773,10954,2183,1253,10917,12103,5646,13209,5807,3457,9176,6327,5180,5521,5251,2354,10134,3954,36,2920],"class_list":["post-31150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-local-news","category-news","tag-bank","tag-budget","tag-captured","tag-classified","tag-covid","tag-covid-19","tag-data","tag-debt","tag-debt-exchange","tag-debt-restructuring","tag-economy","tag-energy","tag-finance","tag-fund","tag-gdp","tag-ghana","tag-government","tag-government-of-ghana","tag-growth","tag-imf","tag-increase","tag-international","tag-international-monetary-fund","tag-paris","tag-poor","tag-price","tag-priority","tag-rebuilding","tag-risk","tag-russia","tag-spring","tag-stock","tag-ukraine","tag-ukraine-war","tag-war","tag-washington","tag-washington-dc","tag-will","tag-world","tag-world-bank"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/31150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/comments?post=31150"}],"version-history":[{"count":0,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/31150\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media\/31156"}],"wp:attachment":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media?parent=31150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/categories?post=31150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/tags?post=31150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}