Ghana’s total public debt witnessed a notable decline, dropping by GH¢15.8 billion month-on-month to settle at GH¢726.7 billion in December 2024, according to the Bank of Ghana’s 2025 Summary of Financial and Economic Data. In November 2024, the country’s total public debt stood at GH¢742.5 billion.
Despite this decline in cedi terms, the total debt stock in dollar terms rose to US$49.4 billion in December 2024, compared to US$48.3 billion in the previous month, reflecting the impact of exchange rate fluctuations.
Debt-to-GDP Ratio and External Debt Trends
Ghana’s total debt-to-GDP ratio stood at 61.8%, a reflection of both economic expansion and fiscal measures aimed at stabilizing the country’s debt burden. Notably, external debt climbed to US$28.3 billion in December 2024, marginally up from US$28.0 billion in November 2024. The increase was largely attributed to the depreciation of the Ghanaian cedi during the period.
In contrast, Ghana had a significantly higher external debt of US$32.1 billion in September 2024, indicating a downward trend over the last quarter of the year.
Domestic Debt and Fiscal Indicators
On the domestic front, Ghana’s domestic debt declined to GH¢309.8 billion in December 2024, representing 26.3% of GDP. The reduction, albeit modest from GH¢311.4 billion in November, was largely driven by a drop in yields on government securities.
Fiscal performance also saw some adjustments, with the fiscal deficit-to-GDP ratio pegged at 5.2% in December 2024. Meanwhile, the primary balance recorded a deficit of 1.2% of GDP, signaling ongoing fiscal pressures despite efforts to consolidate public finances.
Economic Outlook and Implications
As of December 2024, Ghana’s economy stood at GH¢1.176 trillion, reflecting economic expansion amid government efforts to sustain growth while managing debt vulnerabilities. The mixed performance in debt reduction and external obligations highlights the importance of prudent fiscal management, exchange rate stability, and revenue mobilization in Ghana’s economic strategy for 2025.
