FLASHBACK: What Akufo-Addo said about Ghana's increasing debt in 2012

President Nana Addo Dankwa Akufo-Addo in February 2012 asserted that the erstwhile NDC administration had tripled Ghana's public debt.

In a tweet by he said, "within 3 years, they have tripled the national debt. Misi sika no wo he?"

Read the full story originally published on May 24, 2022 by www.ghanaweb.com.

Ghana’s public debt stock shoots up to GH¢391.9bn ending March 2022 – BoG

In 3 years NDC tripled the national debt - Akufo-Addo's 2014 tweet reshared

Ghana’s debt-to-GDP ratio estimated at 78%

President Nana Addo Dankwa Akufo-Addo in February 2012 asserted that the erstwhile NDC administration had tripled Ghana's public debt. "But where is the money?" he queried.

Ghana's total public debt more than doubled to GH¢35.1 billion between 2010 and 2012, causing the public debt-to-GDP ratio to increase to 48.4 percent and making the country face a high risk of debt distress and increased overall debt vulnerability.

This caused general unrest among Ghanaians who feared the debt situation could escalate further if managers of the economy did not act fast.

In a tweet by President Nana Addo Dankwa Akufo-Addo on February 18, 2012, he said, "within 3 years, they have tripled the national debt. Misi sika no wo he??"

However, in December 2016, after President Akufo-Addo assumed office, Ghana's debt stood at GH¢122 million, representing about 62% of GDP. This was based on the old economic value of the country. However, at the end of September 2019, Ghana's public debt had risen to about GH¢208 million.

Ghana's current debt situation

Ghana’s public debt stock at the end of March 2022 rose by some GH¢40.1 billion to GH¢391.9 billion, data from the Bank of Ghana’s May 2022 Summary of Economic and Financial Data has shown.

This, in terms of the country’s Gross Domestic Product (GDP), is estimated at 78 percent, which is slightly lower than the 80.1 percent earlier recorded in December 2021.

According to the figures, the increase in the debt stock was largely attributed to the exchange rate instability and some borrowings from the domestic market.

On the monthly basis, Ghana’s public debt in the first quarter of this year rose by GH¢20.5 billion in January 2022 and subsequently GH¢19.7 billion in February 2022.

In terms of domestic debt, the BoG’s figures showed an increase of GH¢8 billion in the first quarter of 2022 to make GH¢189.9 billion in March 2021. This is equivalent to 37.8 percent of GDP.

On the external component of the overall public debt stock, the figure rose to US$28.4 billion (GH¢201.9 billion) in March 2022, from an earlier US$28.1 billion in December 2021.

This, however, indicated there were no borrowings on the external component in the first quarter of 2022 but a debt-to-GDP ratio of 40.2 percent was recorded as external debt.

In terms of the cedi component of the total debt stock for the period, the BoG data showed an increase of GH¢31.9 billion in the first three months of 2022.

This was largely attributed the depreciation in the value to of the Ghana cedi to US dollar.

Meanwhile, the latest figures for the country's public debt stock could force government to stick to more homegrown solutions to sustain the Ghanaian economy.

See the President's tweet below: