Ghana ranks 61st among 186 countries in terms of the lowest debt-to-GDP ratio, standing at 66% in 2025, according to findings by Visual Capitalist. This places Ghana favorably compared to many advanced economies, where the average debt-to-GDP ratio is 110%, and even lower than the average of 74% for emerging and developing economies.
While some countries, such as Sudan, top the global list with a staggering 252% debt-to-GDP ratio, largely due to prolonged conflict and economic instability, Ghana’s debt level appears relatively moderate. In contrast, Japan holds the highest debt burden among developed nations at 235%, driven by persistent fiscal deficits and demographic challenges.
The United States also records a high ratio of 123%, reflecting years of deficit spending and extensive stimulus measures, while Germany, among G7 nations, boasts the lowest at 65%, projected to decrease further to 58% by 2029.
How Ghana Compares to Other African Countries
Despite its relatively moderate debt ratio, Ghana’s position among African countries is noteworthy. Several African nations have higher debt burdens, with some far exceeding global averages. Here’s a look at the African countries that rank higher than Ghana in debt-to-GDP ratios:
- Sudan (#1) – 252%: The highest globally, driven by economic instability and conflict.
- Senegal (#11) – 111%: Reflecting ongoing fiscal challenges and external debt accumulation.
- Mozambique (#17) – 101%: High public debt following years of economic strain and financial crises.
- Congo (#27) – 91%: Significant debt burden from years of political and economic turmoil.
- Egypt (#30) – 87%: A result of fiscal expansion and state-led infrastructure investments.
- South Africa (#38) – 80%: Debt growth linked to slow economic recovery and social spending.
- Guinea-Bissau (#40) – 79%: Reflecting the economic impact of political instability.
- Gabon (#41) – 79%: High debt driven by fluctuating oil revenues.
- Rwanda (#43) – 78%: Debt accumulated from infrastructure investments and development projects.
- Malawi (#48) – 73%: Resulting from fiscal pressures and debt-financed development.
- Togo (#53) – 70%: Due to public spending and limited economic expansion.
- Kenya (#57) – 68%: Driven by infrastructural loans and fiscal deficits.
- Gambia (#60) – 68%: Reflecting structural economic challenges and high public expenditure.
Compared to these countries, Ghana’s 66% debt-to-GDP ratio appears relatively modest, positioning it as one of the African countries with more manageable public debt levels.
Despite maintaining a relatively lower debt-to-GDP ratio compared to some African counterparts, Ghana must remain cautious in managing public debt. High public debt often stems from economic shocks or expansive fiscal policies, as seen during global crises like the COVID-19 pandemic. While borrowing can stimulate economic recovery, excessive debt levels can hinder long-term growth, leading to slower GDP expansion, currency depreciation, and potential challenges in debt servicing.
