Jump to content
9jaonline Forum

World Bank classifies Ghana as high debt distressed country, projects debt to GDP of 104%


salazar
 Share

Recommended Posts

image.thumb.jpeg.8b1d04e786f3a286660d13afb2f09a68.jpeg

 

The World Bank has classified Ghana as a high-debt distress country as it projects the nation’s debt to Gross Domestic Product (GDP) of 104.6 percent by the end of 2022.

 

According to its October 2022 Africa Pulse Report, Ghana’s debt was expected to jump significantly, from 76.6 percent a year earlier, amid a widened government deficit, massive weakening of the cedi, and rising debt service costs.

 

It is also forecasting debt to GDP of 99.7 percent and 101.8 percent of GDP in 2023 and 2024, respectively.

 

The size of Ghana’s economy is estimated at $72 billion, whilst it is expected to spend about 70% of revenue this year to service its debt.

 

The report is coming at a time the Bank and the International Monetary Fund (IMF) are conducting a Debt Sustainability Analysis on the country.

 

A country that is highly debt distressed is unable to fulfill its financial obligations and therefore debt restructuring is required.

 

“Debt is expected to jump in Ghana to 104.6 percent of GDP, from 76.6 percent a year earlier amid a widened government deficit, massive weakening of the cedi, and rising debt service costs.

 The country’s debt is expected to remain elevated at 99.7 percent and 101.8 percent of GDP in 2023 and 2024, respectively.

 

“Tightening of financial conditions globally along with the fall of the domestic currency widened the sovereign spread by 233 basis points since December 2021,” it said.

“As a result, the country lost access to international markets”, the report mentioned.

 

The World Bank further stated that Ghana needed $1.5 billion in assistance from the IMF, which could help to shore up public finances and regain access to credit markets.


It added, “Nevertheless, despite the negotiation with the IMF, investors remain nervous about the country’s debt sustainability.”

These concerns, it said, were expressed by the country’s local and foreign currency ratings downgrade from B-/B to CCC+/C, adding, “as a result, despite the news, the cedi fell further with ripple effects on inflation”.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share



  • Join 1 Million+ 9jaonline Fans

     Join our Whatsapp Group
     Connect with us on LinkedIn
     Join our Telegram Group
  • Latest News

    1. 0

      OPPO A1 Pro Officially Launched, Curved Display, 108MP Camera

    2. 0

      Twitter Blue Check Subscription is Coming Back

    3. 0

      What Sophie Ndaba Said About Leaving With Diabetes

    4. 0

      Meet A Young KwaZulu-Natal man Who Build A Car From Scratch In South Africa

    5. 0

      Today’s Latest Npower Work Nation News For Tuesday 15th November 2022

  • Latest Music

×
×
  • Create New...

We have detected that you are using adblocking plugin in your browser.

The revenue we earn by the advertisements is used to manage this website, we request you to whitelist our website in your adblocking plugin.

Yes