The European Business Council for Africa

The World Bank has warned African countries, Ghana inclusive to spend wisely and implement innovative strategies which will broaden the tax net to capture every income-generating activity in order to close the vast fiscal gap induced by the pandemic – adding that the situation has further heightened the country’s risk of debt distress.

While official data from the Bank of Ghana put Ghana’s public debt at 68.3 percent of Gross Domestic Product – which is just below the generally accepted debt sustainability threshold of 70 percent, this has been computed based on an assumed 6.8 percent growth rate for 2020. Based on the revised growth rate of between 0.9 percent and 2.5 percent – depending on whose forecasts are being used – the public debt to GDP ratio is already above that threshold. […]

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