Ghana Cuts Public Debt by GH¢40 Billion as Fiscal Consolidation Gains Traction

Accra, Ghana — Ghana’s public debt declined by GH¢40 billion between September and November 2025, signalling renewed momentum in fiscal consolidation as tighter budget controls and improving macroeconomic conditions begin to show through.

Data from the Bank of Ghana show total public debt falling to GH¢644.6 billion in November 2025, equivalent to 45.5% of Gross Domestic Product (GDP). The reduction marks a notable reversal after months of gradual debt accumulation earlier in the year.

In dollar terms, Ghana’s public debt stood at US$57.2 billion in November 2025, down from US$57.8 billion in October, though still above the US$55.1 billion recorded in September, reflecting valuation effects linked to currency movements.

The debt trajectory over 2025 has been uneven. Between March and May 2025, Ghana’s total public debt stock dropped sharply by GH¢156.4 billion, reaching GH¢612 billion, largely reflecting the impact of debt restructuring and exchange rate gains. That decline was followed by a steady increase through mid-year, before a renewed pullback in October and November.

Central bank figures indicate that public debt stood at GH¢630.2 billion in October 2025, before rising modestly in November amid seasonal financing pressures.

On the external front, Ghana’s external debt declined to US$29.3 billion in November 2025, marginally lower than US$29.5 billion, accounting for 23.3% of GDP. The moderation underscores the combined effect of debt restructuring, restrained borrowing and improved external buffers.

Domestic debt also eased over the period, falling to GH¢314.5 billion in November 2025 from GH¢317.6 billion in September, representing about 22.2% of GDP. Analysts say the decline reflects reduced domestic financing needs and improved liquidity management by the Treasury.

Fiscal performance indicators further point to strengthening discipline. The fiscal deficit-to-GDP ratio stood at 1.4% in November 2025, while the primary balance recorded a surplus of 2.8% of GDP, highlighting the government’s ability to cover non-interest expenditures from revenues.

Economists caution that while the debt reduction is encouraging, sustaining the gains will depend on continued expenditure restraint, revenue mobilisation and prudent debt management, particularly as Ghana remains under close monitoring through its IMF-supported programme.

Still, the latest figures suggest that the country is gradually rebuilding credibility after years of fiscal strain, with debt dynamics increasingly moving in a direction policymakers hope will support long-term stability and growth.

Source: Accra Business News