The International Monetary Fund (IMF) has expressed major worry about Ghana’s growing appetite for debt, saying the economy is at high risk of hitting more than 63 per cent of GDP by end of this year.
Ghana’s public debt, currently stands at a staggering GH¢205billion or 60 per cent of GDP.
However, the IMF in its 2019 Article IV Consultation with Ghana warned that the energy and financial sector costs will drive the debt level to 63.1 per cent of GDP by the end of 2019.
“Most directors urged the authorities to avoid new collateralised borrowing to help reduce public debt and improve fiscal transparency. Directors emphasised that a more ambitious fiscal stance – based on a comprehensive domestic revenue mobilisation strategy – would help anchor debt dynamics on a clearly declining path, contain financing needs, create buffers for contingent liabilities and support a stronger external position,” the IMF report read.
“They welcomed the Fund’s capacity development efforts to bolster the authorities’ fiscal reforms. A number of directors suggested the adoption of a formal debt anchor to guide the authorities’ debt sustainability efforts over the medium-term.”
The IMF directors further called for boosting export competitiveness, increasing economic diversification, accelerating productivity growth, improving the business environment and promoting digitalisation to boost opportunities.