Ghana’s indebtedness just got a bit higher as new data from the Bank of Ghana’s May 2026 Summary of Economic and Financial Data reveals a significant surge in the nation’s total public debt.
The Bank of Ghana data reveals that the country’s total public debt jumped by a staggering $2.5 billion in only one month.
As of February 2026, the total debt stock reached $63.1 billion, up from $60.6 billion in January. When translated into local currency, the figures are equally staggering, with the debt climbing from GHC 663.4 billion to GHC 674.1 billion in just thirty days.
This rapid accumulation is raising critical questions about fiscal discipline just as the country prepares to exit its IMF bailout programme.
The Domestic Engine of Debt
The most striking detail in the trend is the source of this new debt. While the government has successfully kept the lid on external borrowing closed, leading to a slight dip from $29.4 billion to $29.3 billion (29.4 billion in January and February), the domestic front is where the pressure is mounting.
Domestic debt saw a massive leap, rising from GHC 341.0 billion in February to GHC 360.4 billion in March 2026. In terms of its share of the economy, domestic debt rose from 21.3% to 22.6% of GDP.
This suggests that the government is leaning heavily on local banks and investors to fund its budget. This move often “crowds out” the private sector from accessing affordable loans.
A Growing Weight on the Economy
For the average Ghanaian, the Debt-to-GDP ratio is the ultimate economic health check. This is because it measures how much a country owes against what it produces.
This ratio saw a concerning uptick, moving from 41.5% in January to 42.2% in February 2026.
While these levels are lower than the peaks seen during the height of the 2023 crisis, the sudden reversal of the downward trend is significant.
After months of relative stability where the ratio hovered around 44% in late 2025 and dropped to 41.5% at the start of 2026, this new upward trajectory suggests that the country has not fully subdued the debt threat.
Is it Time to Worry?
The timing of this uptick is particularly sensitive as Ghana nears the end of its IMF-backed recovery program. On the surface, some indicators remain positive as the government recorded a primary surplus (cash) of 1.1% of GDP in March 2026, which is usually a sign of responsible spending.
However, the sheer speed of the $2.5 billion increase in the total debt stock signals that even with a primary surplus, the overall cost of borrowing and the nominal increase in domestic debt are still pulling the country deeper into the red.
The Bottomline
As the IMF reins are loosened, the concern is whether Ghana can maintain the fiscal discipline required to keep these numbers from spiraling. With Total Public Debt now accounting for 42.2% of the country’s GHC 1,597.1 billion nominal GDP, the $2.5 billion question remains: Is this a one-month anomaly, or a sign that the old habits of heavy borrowing are returning as the international monitors prepare to head home?
Or Ghanaians can trust the new model; the Policy Coordination Instrument (PCI) with the IMF after the bailout to keep the debt in check.
