Josiah
Ghana’s total public debt fell to GH¢641 billion by the end of 2025, down significantly from GH¢726.7 billion recorded in December 2024, according to the Bank of Ghana (BoG).
Data from the BoG’s Summary of Economic and Financial Data for March 2026 shows that the debt stock declined by GH¢82.1 billion year-on-year, with the debt-to-GDP ratio dropping from 61.8 percent to 45.3 percent. On a month-on-month basis, the figure also edged down from GH¢644.6 billion in November 2025.
However, in dollar terms, the country’s total public debt rose to $61.3 billion in December 2025, compared to $49.4 billion in December 2024 and $57.2 billion in November 2025. This increase largely reflects exchange rate movements, with the cedi trading at about GH¢10.45 to the dollar at the end of the year.
A breakdown of the debt stock shows mixed trends between external and domestic borrowing. External debt declined to GH¢307.2 billion ($29.4 billion), from GH¢330.2 billion in November 2025 and GH¢416.8 billion in December 2024. In contrast, domestic debt rose to GH¢333.8 billion, up from GH¢314.5 billion in November and GH¢309.8 billion a year earlier, pointing to continued reliance on local financing.
On the fiscal side, government revenue improved towards the end of the year, reaching 16.1 percent of GDP in December 2025, up from 13.4 percent in November and slightly higher than 15.9 percent in December 2024. Domestic revenue, driven largely by taxes, remained the main contributor, accounting for 15.9 percent of GDP, with tax revenue alone making up 13.1 percent.
Government expenditure matched revenue at 16.1 percent of GDP, marginally lower than 16.6 percent recorded in December 2024. Capital expenditure remained relatively low at 1.4 percent of GDP. Meanwhile, the overall fiscal deficit (on a cash basis) narrowed to 3.1 percent of GDP, improving from 5.2 percent the previous year. The government also posted a primary surplus of 0.5 percent of GDP, indicating stronger fiscal discipline.
Analysts say the decline in public debt marks one of the sharpest reductions in Ghana’s history, largely driven by ongoing debt restructuring and fiscal consolidation efforts. Nonetheless, rising domestic borrowing could tighten liquidity in the local economy, while the increase in dollar-denominated debt highlights persistent exchange rate risks.
Overall, the BoG report suggests that key indicators, including the debt-to-GDP ratio and fiscal balance, point to steady progress in Ghana’s efforts to restore fiscal stability.
Source: Omanghana.com
