{"id":1222848,"date":"2022-10-12T18:37:04","date_gmt":"2022-10-12T18:37:04","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/10\/12\/ghanas-debt-to-gdp-to-hit-90-7-by-end-of-2022-imf-predicts\/"},"modified":"2022-10-12T18:37:04","modified_gmt":"2022-10-12T18:37:04","slug":"ghanas-debt-to-gdp-to-hit-90-7-by-end-of-2022-imf-predicts","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/10\/12\/ghanas-debt-to-gdp-to-hit-90-7-by-end-of-2022-imf-predicts\/","title":{"rendered":"Ghana\u2019s debt to GDP to hit 90.7% by end of 2022 \u2013 IMF predicts"},"content":{"rendered":"

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The International Monetary Fund (IMF) has projected that Ghana will end the year with a Debt-to-GDP of 90.7%.<\/p>\n

This was captured in its Fiscal Outlook Report released on the sidelines of the on-going IMF\/World Bank Annual meetings in Washington DC, USA.<\/p>\n

The report, also forecasts that the Debt\u2013to-GDP could reduce to 87.8% in 2023.\u00a0<\/p>\n

According to the IMF, revenue expressed as a ratio of GDP could also hit 14.1% at the end of 2022.<\/p>\n

It will subsequently increase to 14.7% in 2023 and 15.4% in 2024\u201d, the report said, classifying Ghana as a Low Income Developing Country.<\/p>\n

Implications\u00a0<\/strong><\/p>\n

Ghana is currently undergoing Debt Sustainability Analysis with the IMF and the World Bank. This is expected to help the country ascertain the true levels of the debt stock.<\/p>\n

The country was recently classified as a High Risk of Debt Distress by the World Bank and IMF in its Debt Sustainability Analysis.<\/p>\n

The two Bretton Wood institutions are currently conducting a new Sustainability Debt Analysis on Ghana \u2013 a situation that could influence the outcome of an economic programme with Ghana by the end of 2022.<\/p>\n

The Finance Minister, Ken Ofori-Atta, has already indicated that government is working hard to reach a programme with the IMF by November 2022.<\/p>\n

Government is hoping to secure a programme with the IMF before the 2023 Budget presentation in parliament within the same period.<\/p>\n

Debt to GDP issues<\/strong><\/p>\n

In October 2022, data from the Bank of Ghana pegged the country\u2019s debt stock at \u20b5402 billion cedis , representing 68% of GDP .<\/p>\n

Some financial observers have stated that with an expected expansion of the economy and an IMF programme, the country\u2019s debt stock may not reach \u201cunsustainable levels\u201d.<\/p>\n

World Bank on Ghana\u2019s debt<\/strong><\/p>\n

The World Bank in its Africa Pulse Report released in October 2022 projected that Ghana will end 2022 with a Debt \u2013to \u2013GDP ratio of 104%.<\/p>\n

By this, Ghana\u2019s debt stock could go above the projections made by the IMF.<\/p>\n

The increase could be linked largely to the cedi depreciation and review of payment terms for some loans as well as new borrowings by government<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The International Monetary Fund (IMF) has projected that Ghana will end the year with a Debt-to-GDP of 90.7%. This was captured in its Fiscal Outlook Report released on the sidelines of the on-going IMF\/World Bank Annual meetings in Washington DC, USA. The report, also forecasts that the Debt\u2013to-GDP could reduce to 87.8% in 2023.\u00a0 According […]<\/p>\n","protected":false},"author":1,"featured_media":1222749,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[1580,1984,250,1327,3074,2543],"class_list":["post-1222848","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-debt","tag-gdp","tag-ghanas","tag-hit","tag-imf","tag-predicts"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1222848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1222848"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1222848\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1222848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1222848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1222848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}