It appears Ghana’s debt reforms are bearing fruit as the country’s public debt position has steadily improved, with the latest data from the Bank of Ghana showing a clear downward trend in debt levels compared to a year ago.
The latest Summary of Economic and Financial Data published by the Bank of Ghana, ending November 2025, reveals that as of November 2025, total public debt stood at 45.5 percent of GDP. This marks a significant drop from levels above 60 percent recorded in the same period last year.
In practical terms, Ghana will need to sell just 45.5% of its worth (GDP) to defray all its debt now, compared to 63% of its worth in November 2025. This means that the country’s debt overhang is reducing, thanks to the painful debt reforms and the fiscal discipline of the current administration.
This marks an important shift in the country’s macroeconomic story, pointing to gradual fiscal consolidation and debt stabilisation.
Below is a closer look at what the numbers are telling us.
Total Public Debt in US Dollar Terms
In dollar terms, Ghana’s total public debt has broadly stabilised over the year. In November 2024, public debt stood at about US$48.3 billion. By November 2025, it had increased to around US$57.2 billion.
This means that from November 2024 to November 2025, the country added just $8.9 billion to its debt. Within the year, the debt in dollar terms peaked close to US$59.9 billion in mid-2025 before reducing gradually to US$57.2 billion.
Although the dollar figure may still look high, the rate of debt accumulation has slowed, and recent months show moderation rather than sharp increases. This suggests government borrowing is becoming more controlled compared to earlier periods of rapid build-up.
Total Public Debt in Ghana Cedis: Fluctuating But with a Clear Downward Bias
Measured in Ghana cedis, total public debt has fluctuated over the year, largely reflecting exchange rate movements and domestic refinancing. In November 2024, public debt stood at about GH¢742.5 billion. By November 2025, it was around GH¢644.6 billion, representing a notable year-on-year reduction.
At its peak earlier in 2025, debt briefly hit around GH¢760 billion in the early part of 2025, but subsequent months saw consistent fluctuating declines. This easing reflects tighter fiscal management, reduced domestic borrowing pressure, and relative currency stability compared to the previous year.
Public Debt-to-GDP Ratio: The Big Relief Point
The most encouraging signal comes from the debt-to-GDP ratio. In November 2024, Ghana’s public debt stood at 63.1%of GDP. One year later, this has fallen sharply to 45.5%. This is about a 17.6 percentage point reduction.
In everyday terms, this means the size of the economy has grown faster than the pace of new debt, easing the overall burden. For households and businesses, this matters because a lower debt ratio reduces pressure on taxes, interest rates, and government spending cuts in the future.
Domestic Debt: Marginal Increase in Nominal Terms, but Lower to GDP
On a year-on-year basis, the domestic debt stock saw a very marginal uptick. From GH¢311.4 billion in November 2024, it had marginally increased to GH¢314.5 billion. However, the expansion of the economy came to the rescue. From 26.5% to GDP in November 2024, it declined to 22.2%.
It is worthy of note that the domestic debt, over the year, had been fluctuating, reaching a peak of GH¢328 billion in February 2025 and declining to as low as GH¢311 billion in October 2025 before the marginal uptick in the subsequent month.
This shows that even where nominal levels remain high, domestic debt is becoming less burdensome relative to the size of the economy. Reduced reliance on domestic borrowing also helps ease pressure on interest rates and leaves more room for private sector lending.
External Debt Falls Significantly
External debt, in dollar terms, follows the same pattern as the domestic debt. While it has marginally increased in nominal terms, its pull on the country’s GDP has reduced. In November 2024, external debt in US dollars stood at US$28 billion; in November 2025, it had seen a marginal uptick to US$29.3 billion.
In local currency terms, there was a very noticeable decline. From GH¢ 431.1 billion in November 2024, it declined to GH¢ 330.2 billion.
The November 2024 external public debt took a share of 35.4% of GDP. By November 2025, the external debt’s share of GDP had fallen sharply to 23.3%.
This decline in ratio terms is significant. It suggests that despite currency risks and global financing pressures, Ghana’s external obligations are becoming more manageable as the economy expands and borrowing slows.
The Bigger Picture
The latest public debt data point to a clear trend that Ghana’s public debt is lower today, relative to the size of the economy, than it was a year ago. While challenges remain, especially around refinancing and revenue mobilisation, the steady fall in debt ratios signals improving fiscal health.
For businesses and Ghanaians, this matters because lower debt pressure reduces the risk of sudden tax hikes, sharp spending cuts, or excessive borrowing that crowds out private businesses, which can cause interest rates to soar.
