No substantial reduction expected in Ghana’s debt-to-GDP ratio

Vish Ashiagbor, a Country Senior Partner at the PricewaterhouseCoopers (PwC) Ghana, has indicated Ghana is not likely to witness a substantial reduction in the debt to Gross Domestic Product ratio.

According to him, Government of Ghana currently bears the brunt for its debt sustainability and management and must therefore implement stringent measures to boost revenue generation.

“It is for government to think-through and implement measures which boost the revenue, and as much as possible measures that can contain costs. To the extent that there is a view that the economy is being managed competently, and investors, stakeholders, financial institutions have confidence, the cost of borrowing can be more competitive or reduced to some degree.”

Vish Ashiagbor made the comment during a preliminary session at the maiden edition of the Money Summit organised by the Business and Financial Times (B&FT) on May 25, 2021, in Accra.

Presently, the International Monetary Fund has pegged Ghana’s debt to GDP ratio at 78 percent (including energy sector debt). The Bretton Woods institution has also projected the ratio is expected to increase to 83.2 percent in 2022 – and then further to 84.8 percent in 2023.

This is however attributed to the coronavirus pandemic’s impact on the economy and rising government expenditure.