Ghana has recorded a major reduction in its public debt stock during the first half of 2025, according to a new Bank of Ghana (BoG) report. The country’s total debt dropped from GH¢769.4 billion in March 2025 to GH¢613 billion by June 2025—a decline of GH¢156.4 billion. The BoG also noted that the debt stock in May 2025 had fallen to GH¢612.1 billion before slightly rising again in June.
This significant drop brings Ghana’s public debt-to-GDP ratio to approximately 43.8%, offering fiscal breathing room amid broader efforts to restore macroeconomic stability. In dollar terms, the debt now stands at $59.4 billion, compared to $49.5 billion reported earlier in the year.
Cedi Gains, Surplus Primary Balance, and Narrowed Deficit Drive Improvement
The Bank of Ghana attributes the reduction in public debt to the strengthening of the cedi against major currencies, which helped lower the local currency value of external debt. However, while external debt rose slightly from $28.5 billion in March to $29.1 billion in June 2025, this was offset by the currency’s appreciation. External debt now represents 29.1% of GDP.
Domestic debt saw a moderate increase in June to GH¢312.7 billion, up from GH¢315.6 billion in May but still lower than GH¢326.9 billion in March. This translates to about 22.3% of GDP.
The country also posted a fiscal deficit-to-GDP ratio of 1.1% in June 2025, reflecting tighter expenditure control and revenue improvements. Encouragingly, Ghana recorded a primary surplus of 0.7% of GDP, suggesting enhanced debt sustainability and progress in meeting fiscal targets set under international debt relief and restructuring programs.
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