Ghana’s Public Debt Drops by GH¢139 Billion in H1 2025 Amid Improved Fiscal Outlook
Ghana’s total public debt stock declined significantly by GH¢139 billion in the first half of 2025, according to the latest data released by the Bank of Ghana. The debt fell from GH¢752.1 billion in January to GH¢613.0 billion by the end of June, despite a minor uptick from GH¢612.1 billion in May.
The improvement reflects the impact of ongoing fiscal consolidation, supported by currency stability, nominal GDP growth, and reduced domestic borrowing.
However, the country’s external debt remains a concern, continuing to account for a large share of liabilities and exerting pressure on foreign reserves.
As of June 2025, Ghana’s external debt stood at GH¢300.3 billion or 21.4% of GDP, slightly up from GH¢296.2 billion in May. In US dollar terms, external debt rose to US$29.1 billion, driven by the effects of currency fluctuations and high servicing costs for foreign-denominated loans.
Meanwhile, domestic debt dropped marginally to GH¢312.7 billion in June from GH¢315.6 billion in May, representing 22.3% of GDP—an indication of restrained borrowing on the local market and tighter fiscal management.
Importantly, Ghana’s public debt-to-GDP ratio has declined to 43.8%, a major improvement from 66.8% recorded in the same period last year. Analysts attribute this not only to debt reductions but also to GDP rebasing and policy efforts to stabilise the macroeconomic environment.
While markets have reacted positively to the declining debt trend, economists caution that structural vulnerabilities remain. Ghana’s dependence on external financing poses risks in the event of exchange rate volatility or tightening global financial conditions, which could reverse the gains made so far.
To sustain progress, experts are urging continued fiscal discipline, enhanced foreign reserve management, and greater access to concessional financing to ensure long-term debt sustainability and protect the economy from future shocks.
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