Energy Sector Levy debt 2% of Ghana\u2019s GDP, Fitch <\/b><\/p>\n Ghana’s debt constitutes 539% of government revenue, Fitch<\/p>\n Fiscal deficit to reduce to 9.1% of GDP in 2022<\/p>\n Ghana’s debt reached an estimated 83% of the country\u2019s Gross Domestic Product (GDP) at end of 2021, Fitch Ratings has indicated.<\/p>\n According to a report by Fitch, debt amounting to approximately 2% of GDP has been accrued through the Energy Sector Levy Act as of the end of 2021<\/p>\n The report further forecasted that \u201cgovernment debt to remain on an upward path through 2025, but expected to grow at a slower pace as the primary deficit narrows in 2022 and 2023. Debt affordability metrics will remain weak.\u201d<\/p>\n The report estimated that Ghana’s debt accumulated at the end of 2021 constituted 539% of government revenue.<\/p>\n \u201cInterest payments were 44.6% of revenue in 2020 and the ratio is likely to continue rising through 2023, assuming a rising share of domestic debt in total debt in the absence of external financing options,\u201d it added.<\/p>\n Fitch also indicated Ghana recorded a fiscal deficit of 12.5 percent as the end of 2021, however this deficit would reduce to 9.1 percent in 2022.<\/p>\n \u201cFitch forecasts the general government fiscal cash deficit to narrow to 9.1% of GDP in 2022 from 15.1% in 2020 and 12.5% in 2021 (including 3% of GDP in domestic arrears clearance and payments related to the state-owned energy sector),\u201d the report said<\/p>\n \u201cThe 2022 deficit would still be more than twice the 2022 ‘B’ median of 4.6% and risk to public finances remain high. The government envisages a deficit (including financial and energy sector support) of 7.4% in 2022 and 5.5% in 2023, with a fall to below the legal deficit ceiling of 5% in 2024,\u201d it added.<\/p>\n The possibility of an increase in the debt to GDP ratio as well as the estimated fiscal deficit for 2022 were among the reasons why Fitch downgraded Ghana\u2019s credit ratings from B to B-.<\/p>\n Ghana\u2019s high debt to GDP ratio shows that Ghana is less likely to pay back its debt and its risk of default is very high.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Ghana’s Finace Minister, Ken Ofori-Atta Energy Sector Levy debt 2% of Ghana\u2019s GDP, Fitch Ghana’s debt constitutes 539% of government revenue, Fitch Fiscal deficit to reduce to 9.1% of GDP in 2022 Ghana’s debt reached an estimated 83% of the country\u2019s Gross Domestic Product (GDP) at end of 2021, Fitch Ratings has indicated. According to […]<\/p>\n","protected":false},"author":1,"featured_media":300822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[1580,1984,250,1985,598],"class_list":["post-753309","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-debt","tag-gdp","tag-ghanas","tag-ratio","tag-rise"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/753309","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=753309"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/753309\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=753309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=753309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=753309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Ghana's](\"https:\/\/www.ghanamma.com\/wp-content\/uploads\/2021\/11\/89598949.295.jpg\" "\\"Ghana's")
Ghana’s Finace Minister, Ken Ofori-Atta<\/span><\/span><\/p>\n<\/div>\n