Ghana’s total public debt has significantly decreased to GH¢628.8 billion, representing 44.9% of the country’s Gross Domestic Product (GDP), according to the latest data from the Bank of Ghana. This figure marks a notable decline from GH¢763.8 billion (64.9% of GDP) in July 2024 and GH¢726.7 billion (61.8% of GDP) in December 2024.
The reduction in public debt is attributed to the strong appreciation of the Ghanaian cedi against major currencies earlier in the year, which temporarily lowered the value of the country’s external debt obligations. However, recent currency depreciation has reversed some of these gains, exposing the volatility inherent in Ghana’s debt profile.
Key Highlights:
– Total Public Debt: GH¢628.8 billion (44.9% of GDP) in July 2025
– External Debt: $29.0 billion, representing 21.8% of GDP
– Domestic Debt: GH¢323.7 billion, accounting for 23.1% of GDP
– Fiscal Deficit: 1.4% of GDP in July 2025
– Primary Balance: Surplus of 0.7% of GDP in July 2025
Analysis
The Bank of Ghana’s data shows that Ghana’s public debt trajectory remains volatile, influenced by exchange rate movements. While the debt-to-GDP ratio has improved, economists warn that sustained cedi weakness could further inflate the debt stock, potentially straining Ghana’s fiscal resources and complicating efforts to achieve debt sustainability.
Looking Ahead
As Ghana navigates its post-pandemic recovery and global economic headwinds, stakeholders are closely monitoring upcoming fiscal updates for signs of stabilization. The government is expected to prioritize structural reforms to mitigate risks, including bolstering foreign reserves and diversifying export revenues.