Ghana’s domestic credit, reflecting the banking system’s claims on the economy, climbed steadily between May and August 2025, reaching GH¢263.4 billion in August from GH¢250.8 billion in May, central bank data showed. The increase was driven mainly by government borrowing, with private sector lending providing steady support.
Government claims led the surge, rising from GH¢108.6 billion in May to GH¢122.8 billion in August. The growth indicates that banks were providing more funds to support government operations, including budgetary spending and infrastructure projects.
This inflow of credit into government coffers may help sustain public projects and economic activity, though heavier reliance on bank funding could influence interest rates or limit funds available for businesses.
Meanwhile, claims on the private sector grew from GH¢83.4 billion to GH¢92.0 billion, showing that banks continued to lend to businesses and households, supporting investment and day-to-day economic activity.
Claims on the public sector remained stable at GH¢5.0 billion, while other items, which include operational balances and adjustments, fell from GH¢53.8 billion to GH¢43.6 billion, slightly offsetting the overall growth.
The data makes it clear that domestic credit creation is still largely driven by government borrowing, with private sector lending steadily adding to the pool of money circulating in Ghana’s economy.
