New data from the Bank of Ghana shows a dramatic improvement in the country’s fiscal position, with the public debt-to-GDP ratio dropping to 44.5% in November 2025, down from 63.1% a year earlier.
The latest Summary of Economic and Financial Data, released on January 27, 2026, reveals that total public debt fell to GH¢644.6 billion from GH¢742.5 billion in November 2024—a reduction of nearly GH¢100 billion in nominal terms.
This sharp decline is attributed to fiscal consolidation and strong nominal GDP growth. External debt stood at US$29.3 billion (22.5% of GDP), while domestic debt totaled GH¢311.0 billion (22.0% of GDP).
Government revenue and grants increased to 13.4% of GDP by November 2025, while expenditure was contained at 13.9%, down from 16.6% the previous year. This discipline resulted in a positive primary balance of 1.9% of GDP and narrowed the overall fiscal deficit to -1.4% from -5.2%.
The debt reduction coincides with a significant drop in inflation, which fell to 5.4% in December 2025 from 23.8% a year earlier. The Bank of Ghana has cut its policy rate from 27.00% to 18.00% over the same period, with average lending rates declining from 30.25% to 20.45%.
While capital expenditure remains low at 0.9% of GDP, the reduction in government borrowing is expected to ease pressure on credit markets, potentially increasing access to finance for the private sector.
From The Same Category
Mobile Money’s festive surge smashes records, leaving cheques and traditional banking behind
Republic Bank steps up mortgage financing
Producer Price Inflation settles at 1.9% in 2025
Ghana secures 15% free interest in Gold Coast Refinery
Ghana Chamber of Mines warns proposed royalty hikes risk deterring investment
