Ghana’s total public debt stock recorded a sharp decline of GH¢139 billion in the first half of 2025, signalling a significant turnaround in the country’s fiscal position.
According to the Bank of Ghana’s latest data, the total debt dropped from GH¢752.1 billion in January to GH¢613.0 billion by the end of June, with only a marginal increase from GH¢612.1 billion recorded in May.
The marked reduction has been attributed to a combination of factors including a more disciplined debt trajectory, relative exchange rate stability, nominal GDP growth, and a more cautious approach to domestic borrowing. These improvements have helped restore some investor confidence in Ghana’s economy, which is still recovering from years of fiscal distress.
Despite this progress, Ghana’s external debt continues to exert pressure on its foreign reserves. As of June 2025, the country’s external debt stood at GH¢300.3 billion, up slightly from GH¢296.2 billion in May. In dollar terms, this translates to US$29.1 billion, an increase that reflects the continued vulnerability of the economy to currency depreciation and rising external interest costs.
Domestically, there was a modest decline in public debt, which dropped to GH¢312.7 billion in June from GH¢315.6 billion in May, equivalent to 22.3% of GDP. This slight contraction suggests some gains from fiscal consolidation and reduced reliance on local bond markets.
Ghana’s overall public debt-to-GDP ratio held steady at 43.8% in June, a notable drop from 66.8% in the same period last year. Analysts point to GDP rebasing and a stabilising macroeconomic environment as key drivers of the improved debt ratio.
While markets have responded positively to the downward trend, analysts warn that Ghana’s fiscal path remains fragile. The country’s dependence on external financing exposes it to risks from a possible cedi depreciation and a tightening of global credit conditions. A sudden reversal in these areas could unravel the gains made so far.
To preserve momentum, economists say the government must maintain strict fiscal discipline, strengthen foreign reserve buffers, and explore more concessional financing options to manage its debt profile sustainably and protect the economy against external shocks.
