Ghana’s public debt dropped significantly in the first half of 2025, falling by GH¢139 billion, according to the Bank of Ghana’s latest data.
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The debt stock decreased from GH¢752.1 billion at the start of the year to GH¢613.0 billion by end of June, despite a slight rise from GH¢612.1 billion recorded in May. This improvement is attributed to currency stability, nominal GDP growth, and reduced domestic borrowing.
However, external debt still dominates Ghana’s liabilities, posing risks related to exchange rate and interest rate fluctuations.
As of June, external debt stood at GH¢300.3 billion (21.4% of GDP), up from GH¢296.2 billion in May. In US dollar terms, this equates to $29.1 billion.
Domestic debt declined modestly to GH¢312.7 billion in June, down from GH¢315.6 billion in May, representing 22.3% of GDP. The decline suggests increased fiscal discipline and slower issuance of local bonds.
The debt-to-GDP ratio remained steady at 43.8% in June, a significant drop from 66.8% in the same period last year, thanks in part to GDP rebasing and macroeconomic stabilisation efforts.
Despite positive investor sentiment, economists caution that Ghana’s dependence on external financing leaves it vulnerable. A sudden cedi depreciation or tighter global financial conditions could reverse the gains.
To sustain progress, experts recommend prudent fiscal policy, strong reserve management, and increased access to concessional funding.
