The World Bank has insisted that Ghana’s debt is likely to have exceeded 80% of its gross domestic product, tightening the country’s ability to finance its obligation and interest payments. This was made known by the World Bank Country Director Pierre Laporte who was speaking at a public lecture in Accra where he also called on the government to be transparent with Ghanaians regarding the dire situation.
Previously, the Bank of Ghana in its January 2022 Monetary Policy Report has said that the public debt in Ghana was equivalent to 78.4% of its GDP, two percentage points higher than 76.1% at the end of 2020.
According to Laporte, it was important that the country’s leadership was transparent with the status of the country’s economy as it faces a difficult road ahead to restore macro sustainability.
Ghana’s economy has been experienced a crunch in recent times which it government says is caused by the after-effects of COVID19 on global trade. However, the World Bank says signs of an impending debt crisis were obvious before the coronavirus pandemic struck.