Ghana’s total public debt stock declined by GH¢139 billion in the first half of 2025. According to the latest data from the Bank of Ghana, the debt stock fell from GH¢752.1 billion at the beginning of the year to GH¢613.0 billion by the end of June, despite a marginal uptick from GH¢612.1 billion recorded in May.
This significant improvement in the country’s fiscal position is a result of the government’s debt trajectory, aided by currency stability, nominal GDP growth, and restrained domestic borrowing.
However, external debt continues to dominate the country’s liabilities, putting pressure on foreign reserves and exposing the economy to exchange rate and interest rate risks.
As of June, Ghana’s external debt stood at GH¢300.3 billion or 21.4% of GDP, up slightly from GH¢296.2 billion in May.
In dollar terms, the figure rose to US$29.1 billion due to the persistent vulnerability to currency fluctuations and the cost of servicing foreign-denominated obligations.
Meanwhile, domestic debt declined to GH¢312.7 billion in June, down from GH¢315.6 billion the previous month, representing 22.3% of GDP.
The modest decline suggests improved fiscal consolidation and possibly a slowdown in local bond issuance.
The total public debt-to-GDP ratio held steady at 43.8% in June, significantly lower than the 66.8% reported in the same period last year.
This could be attributed primarily to GDP rebasing, as well as ongoing efforts to stabilise the macroeconomic environment.
While the downward trend in debt levels has been positively received by investors and markets, economists warn that structural risks remain.
Ghana’s heavy reliance on external financing means any sharp depreciation of the cedi or tightening of global financial conditions could reverse recent gains.
To consolidate the improvements, fiscal prudence, effective foreign reserve management and expanded access to concessional financing will be critical to maintaining debt sustainability and insulating the economy from future shocks.
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