Ghana’s total public debt stock saw a sharp decline of GH¢139 billion in the first six months of 2025, according to new data released by the Bank of Ghana.
The debt stock fell from GH¢752.1 billion at the start of the year to GH¢613.0 billion by the end of June, reflecting one of the most significant improvements in the country’s recent fiscal history. The figure also marks a marginal increase from GH¢612.1 billion recorded in May.
The drop has been attributed to a mix of factors, including relative currency stability, stronger nominal GDP growth, and a restrained approach to domestic borrowing. These elements have combined to slow the pace of debt accumulation and boost investor confidence.
Despite this progress, the country’s debt portfolio remains heavily skewed towards external liabilities, heightening risks tied to exchange rate volatility and rising global interest rates.
As of June, Ghana’s external debt stood at GH¢300.3 billion, representing 21.4% of GDP—up from GH¢296.2 billion in May. In dollar terms, the external debt increased to US$29.1 billion, due largely to currency movements and ongoing obligations in foreign-denominated instruments.
Meanwhile, domestic debt posted a moderate decline, dropping to GH¢312.7 billion in June from GH¢315.6 billion in May. This represents 22.3% of GDP, signaling a slowdown in local bond issuance and tighter fiscal controls.
Overall, Ghana’s public debt-to-GDP ratio held steady at 43.8% in June—substantially lower than the 66.8% recorded during the same period in 2024. Analysts attribute this improvement to GDP rebasing and continued macroeconomic stabilization efforts.
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