“The demand for foreign exchange to support our unbridled demand for imports undermines and weakens the value of the cedi. This contributed to the depreciation of the Cedi which has lost about 53.8% of its value since the beginning of this year compared to the average 7% annual depreciation of the Cedi between 2017 and 2021.”
The minister also said Ghana’s provisional debt data from January to September 2022 shows a significant increase in the country’s public debt largely due to exogenous factors.
“As at the end of September 2022, provisional figures indicate that total gross public debt stood at GH¢467,371.31 million (US$48,871.34 million), representing approximately 75.9 percent of GDP,” Mr Ofori-Atta told parliament when he delivered the 2023 budget statement.
The domestic debt component he disclosed is GH¢195,657.60 million, which is 31.79 percent of GDP, whilst external debt is GH¢271,713.71 million, representing 44.15 percent of GDP.
The increase in the domestic debt he explained is largely on account of rising interest costs adding “domestic debt as a share of total public debt reduced from 51.6 percent in 2021 to 41.9 percent as at end September 2022.”
The 2023 Budget Statement and Economic Policy of the Government is aimed at restoring and stabilising the macro-economy, a statement from the ministry stated.