Ghana’s overall public debt saw a notable reduction during the first six months of 2025, based on fresh figures released by the Bank of Ghana. The nation’s debt burden shrank by GH¢139 billion, decreasing from GH¢752.1 billion in January to GH¢613.0 billion by the close of June. This reflects a major shift in the country’s debt outlook, although a slight increase was observed in May, when the total reached GH¢612.1 billion.
Government representatives credit the decline to an effective debt management framework, supported by relative currency steadiness, expansion in nominal GDP, and stricter oversight of domestic borrowing. However, external debt remains a concern. By June, Ghana’s foreign debt stood at GH¢300.3 billion, making up 21.4% of GDP. When converted to U.S. dollars, it climbed to $29.1 billion, driven largely by exchange rate movements and the cost of servicing debt held in foreign currencies.
Domestic debt also experienced a modest drop, falling from GH¢315.6 billion in May to GH¢312.7 billion in June, representing 22.3% of GDP. Overall, the ratio of public debt to GDP held steady at 43.8% in June an impressive improvement compared to the 66.8% recorded in the same period of 2024.
Economists attribute this advancement to ongoing macroeconomic adjustments and the recent rebasing of GDP. While the debt reduction has been positively received by investors and financial markets, analysts warn that underlying structural weaknesses persist.
Ghana’s reliance on external funding makes it vulnerable to international financial disruptions, such as currency depreciation and rising interest rates.
Experts stress the importance of maintaining fiscal discipline, prudent management of foreign exchange reserves, and expanding access to concessional loans to preserve the progress made and shield the economy from future instability.
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