Ghana’s public debt stock fell to Ghc641 billion cedis (US$51.6 billion) at the end of 2025, official data showed, marking a modest decline that analysts say could bolster the country’s credit outlook after recent fiscal strains.
Figures released by the Bank of Ghana in its March 2026 Summary of Economic and Financial Data indicated that the West African economy’s debt burden eased both in absolute terms and relative to output.
The country’s debt-to-GDP ratio dropped sharply to 45.3 percent in 2025, down from 61.8 percent a year earlier, reflecting a combination of currency gains and strong economic expansion.
Ghana’s total public debt had stood at 726.7 billion cedis in 2024, underscoring the scale of the decline recorded over the past year.
Market watchers attribute much of the improvement to the appreciation of the local currency, the cedi, particularly in the final quarter of 2025. A stronger currency reduces the domestic value of external debt, which accounts for a significant portion of Ghana’s liabilities.
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“The exchange rate effect has been critical,” a local analyst said, noting that Ghana’s external obligations are largely denominated in foreign currencies, making them sensitive to fluctuations in the cedi.
According to the central bank data, external debt stood at $29.4 billion at the end of 2025, while domestic debt rose marginally to 333.8 billion cedis.
The uptick in domestic borrowing suggests authorities may be relying more on local financing to manage fiscal needs, a trend often seen as less exposed to currency risk but potentially more costly in terms of interest rates.
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Despite the increase in domestic debt, the overall decline in total debt has been welcomed by investors and analysts who have closely monitored Ghana’s fiscal trajectory following recent economic challenges.
Data from the Ghana Statistical Service showed that the economy expanded significantly over the same period, with nominal GDP rising to an estimated 1.4 trillion cedis in 2025 from 1.1 trillion cedis in 2024.
The growth in economic output has played a key role in improving the debt-to-GDP ratio, a key indicator used by investors and credit rating agencies to assess a country’s ability to service its obligations.
Ghana, one of West Africa’s largest economies and a major exporter of gold, oil and cocoa, has in recent years faced mounting fiscal pressures, including high debt levels and rising borrowing costs.
The latest figures suggest some easing of those pressures, although analysts caution that sustaining the gains will depend on continued fiscal discipline and macroeconomic stability.
“There is progress, but the challenge is maintaining it,” another economist said, pointing to the need for prudent debt management and sustained revenue mobilisation.
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The improvement in debt metrics comes at a time when the government is seeking to rebuild investor confidence and stabilise the economy after a period of volatility.
Analysts say the lower debt stock and improved ratio could positively influence Ghana’s next sovereign credit rating reviews, which are closely watched by international investors.
A stronger rating could help reduce borrowing costs and improve access to international capital markets, although risks remain tied to global economic conditions and domestic policy choices.
For now, the data offers a measure of relief for policymakers, signalling that recent economic adjustments may be beginning to yield results.
