As of October 2024, Ghana’s public debt has decreased to GH¢761 billion, down from GH¢807.8 billion in September 2024, reflecting a reduction of GH¢46.8 billion.
This new debt figure accounts for 74.6% of the country’s Gross Domestic Product (GDP).
In dollar terms, the public debt stands at US$46.8 billion, down from US$51 billion the previous month.
The updated data, released by the Bank of Ghana in its Summary of Economic and Financial Data for November 2024, shows a modest decrease, signaling the government’s ongoing efforts to manage the debt amidst economic challenges.
Additionally, the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has decided to maintain the policy rate at 27%, after lowering it from 29% in September 2024. This decision aims to anchor inflation expectations and reduce exchange rate volatility.
The MPC’s announcement, made on Friday, November 29, 2024, noted that inflation projections remain slightly elevated, driven by unstable food prices, exchange rate pressures, fuel costs, and utility tariff adjustments. The rise in food prices, coupled with a rapidly depreciating currency earlier in the year, has altered the inflation trajectory, stalling the disinflation process.
The committee also pointed out that economic uncertainties linked to the upcoming elections and increased demand for foreign currency have caused temporary disruptions in the exchange rate. However, it expects the recent recovery of the cedi to continue as election-related tensions ease and the central bank bolsters its foreign exchange reserves.
While the committee’s policy stance remains in line with the ongoing International Monetary Fund (IMF) program, it stressed the importance of preventing recent trends—such as the persistent depreciation of the cedi—from influencing long-term inflation expectations.
“At the time of the last MPC meeting, average inflation forecast a year ahead which stood at 19.0 percent has increased slightly to 20.1 percent at this forecast round. The horizon for inflation to get back within the target band of 6 -10 percent has slightly shifted forward to Q42025 from the original forecast period of Q32025.
In the near-term, strengthening of the currency will augur well for future price developments. Under the circumstances, the Monetary Policy Committee decided to keep the policy rate unchanged at 27 percent”, the communique added.
Inflation for October 2024 edged up slightly to 22.1%, compared to 21.5% in September, driven by increases in both food and non-food inflation.
The government has set a year-end inflation target of 15%, but with only a month left, elevated risks may challenge the achievement of this goal.
