Ghana’s total public debt has increased in nominal terms, rising from GH¢641.1 billion in December 2025 to GH¢674.1 billion by February 2026, according to the latest fiscal data. However, despite the increase in absolute debt, the country’s debt burden relative to economic output has improved, falling from 44.7 percent of gross domestic product to 42.2 percent over the same period.
The figures highlight a complex fiscal picture for Ghana, where rising nominal debt levels are being offset by stronger economic growth and improved macroeconomic indicators that have expanded the country’s GDP base. This dual movement has resulted in a lower debt-to-GDP ratio, which is often used as a key measure of a country’s ability to manage and repay its obligations.
The increase in total debt reflects continued government borrowing to finance budgetary commitments, infrastructure projects, and debt servicing obligations. Like many emerging economies, Ghana has relied on both domestic and external financing to stabilize public finances following periods of economic pressure caused by global shocks, inflationary trends, and currency volatility.
However, the reduction in the debt-to-GDP ratio suggests that economic growth is beginning to outpace the accumulation of debt. This is generally interpreted by economists as a positive sign, as it indicates improved fiscal sustainability even when nominal debt continues to rise.
The government has consistently emphasised fiscal consolidation measures aimed at restoring macroeconomic stability. These include expenditure rationalisation, revenue mobilisation reforms, and restructuring of certain public financial obligations. Authorities have also focused on strengthening tax compliance and broadening the domestic tax base to reduce reliance on borrowing.
The Bank of Ghana has maintained a cautious monetary stance in recent months, holding the policy rate steady at 14 percent in response to external uncertainties and inflationary risks. While inflationary pressures remain a concern, there are signs of gradual improvement in domestic economic conditions, which may be contributing to the improved debt ratio.
The debt dynamics also reflect ongoing restructuring efforts undertaken in recent years as Ghana works to restore debt sustainability under international financial assistance programmes. These efforts have included negotiations with external creditors and adjustments to the structure of domestic debt instruments to ease repayment pressures.
Despite the improvement in the debt-to-GDP ratio, analysts caution that the rising nominal debt level still presents risks, particularly if economic growth slows or if external shocks affect revenue performance. High debt levels can constrain fiscal space, limiting the government’s ability to invest in development priorities such as infrastructure, health, and education.
Economists also note that exchange rate fluctuations remain a critical factor in Ghana’s debt profile, especially for external debt denominated in foreign currencies. Depreciation of the cedi can significantly increase the local currency value of foreign obligations, adding pressure to overall debt servicing costs.
At the same time, Ghana’s economic outlook is supported by several emerging factors, including improvements in key export sectors such as cocoa, gold, and oil. These commodities continue to play a central role in foreign exchange earnings, which help stabilise macroeconomic conditions and support fiscal planning.
Government officials have maintained that sustaining growth while controlling expenditure will be essential to maintaining the downward trend in the debt-to-GDP ratio. There is also continued emphasis on public sector reforms aimed at improving efficiency and reducing waste in state owned enterprises and government agencies.
The latest figures therefore present a mixed but cautiously optimistic fiscal outlook. While the absolute debt burden has increased, the improved ratio indicates that Ghana’s economy is expanding at a pace that is helping to absorb part of the debt pressure.
Observers say the next phase of Ghana’s economic recovery will depend heavily on maintaining fiscal discipline, ensuring stable inflation trends, and sustaining investor confidence in government policy direction. The ability to manage debt while supporting growth will remain a key test for economic policymakers in the months ahead.
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