Ghana’s Public Debt Falls by GH¢139 Billion in First Half of 2025

Ghana’s total public debt dropped significantly by GH¢139 billion in the first half of 2025, marking a notable step toward fiscal consolidation. New data from the Bank of Ghana shows the national debt stock decreased from GH¢752.1 billion in January to GH¢613.0 billion by the end of June—despite a slight increase from GH¢612.1 billion in May.

This decline reflects a combination of factors, including improved currency stability, moderate nominal GDP growth, and controlled domestic borrowing. Analysts say these trends demonstrate the impact of stronger fiscal discipline and strategic economic management.

However, external debt remains a major concern. As of June, Ghana’s external debt rose slightly to GH¢300.3 billion (21.4% of GDP), up from GH¢296.2 billion in May. When measured in U.S. dollars, the debt increased to $29.1 billion, highlighting continued exposure to currency volatility and rising interest costs on foreign loans.

Domestically, the debt stock saw a marginal drop to GH¢312.7 billion in June from GH¢315.6 billion in May, accounting for 22.3% of GDP. This reduction may indicate decreased issuance of local bonds and a more cautious borrowing approach.

Overall, Ghana’s debt-to-GDP ratio held firm at 43.8% in June—down significantly from 66.8% a year earlier. This improvement is partly attributed to the recent rebasing of GDP and broader macroeconomic reforms.

Despite the positive trajectory, economists caution that risks remain. Ghana’s dependence on external financing leaves it vulnerable to cedi depreciation and global financial tightening.

To sustain the progress, experts recommend continued fiscal discipline, stronger foreign reserve management, and greater access to concessional loans. These measures, they say, are essential for maintaining debt sustainability and shielding the economy from future external shocks.