Ghana's public debt increased by GH¢46.4 billion in the first two months of 2024, reaching GH¢658.6 billion ($53.1 billion), according to data from the Bank of Ghana.

This total public debt stock is equivalent to 62.7% of the country's Gross Domestic Product (GDP).

The Central Bank's May 2024 Summary of Economic and Financial Data revealed that the country's debt, which ended 2023 at GH¢611.2 billion, increased to GH¢626.0 billion in January 2024 and further to GH¢658.6 billion in February 2024.

The rise in public debt was attributed to the cedi's depreciation and increased government borrowing on the domestic market.

In the first two months of 2024, domestic debt increased by GH¢18.5 billion, while external debt rose by GH¢28.9 billion, primarily due to the cedi's depreciation.

The Central Bank data showed that the external component of the total public debt stood at $30.6 billion (GH¢350.3 billion) in February 2024, representing 36.1% of GDP.

Domestic debt was GH¢278.7 billion in February 2024, also about 36.1% of GDP.

The report also indicated that the government’s fiscal operations were on target, with the deficit-to-GDP ratio standing at 2.6% in the first quarter of 2024, compared to a deficit of 1.8% of GDP during the same period the previous year.

Additionally, the primary balance recorded a deficit of 1.4% of GDP in March 2024.

In December 2022, Ghana halted interest payments on loans to its external creditors due to economic difficulties.

Subsequently, the country received a Memorandum of Understanding from its bilateral creditors regarding the restructuring of a portion of the external debt.

After successfully negotiating a deal with the bilateral creditors in January 2024, Ghana is currently in negotiations with bondholders.