Ghana’s debt stock hits GH¢205.5 billion, here’s how much every Ghanaian owes
A new data from the Bank of Ghana has shown that the country’s total debt stock has hit GH¢205.5 billion as of July 2019.
The amount represents 59.4% of the country’s Gross Domestic Product (GDP).
The data further showed that between May and July this year Ghana’s debt stock increased by GH¢5.5 billion.
As of May 2019, the debt stock was at GH¢200 billion.
Comparing the debt stock to the same period in 2018, the figure was at GH¢159.7 billion which represented 53.5%of the GDP at the time.
A breakdown of the debt stock shows that the external component was at 20.4 billion dollars representing 31% of GDP.
The domestic side is made up of GH¢98 billion is representing 28.4% of GDP.
How much does every Ghanaian owe
Based on the GH¢205.5 billion debt, it is estimated that every Ghanaian should owe about GH¢6,850 if the debt is shared among the population size of 20 million.
Impact of rising debt stock on the economy
For some, the impact would be on Ghana’s debt servicing bill.
According to the 2019 Budget government is planning to set aside GH¢18.6 billion just to pay for the interest of funds borrowed.
Again, if the economy does not expand to accommodate this rising debt, it could impact negatively on the country Debt-to-GDP Ratio, which currently stands at almost 60%.