Ghana’s total public debt surged by GH¢42.7 billion in the first quarter of 2025, reaching GH¢769.4 billion by March 2025, according to the latest report from the Bank of Ghana.
The figures, published in the central bank’s May 2025 Summary of Financial and Economic Data, reveal a steady climb in the nation’s debt burden since the start of the year, with the debt stock at GH¢752.1 billion in January and GH¢768.1 billion in February.
Despite the cedi’s recent gains, the country’s total debt in dollar terms edged up to US$49.5 billion in March 2025—just a hair above the December 2024 level.
Notably, the expansion of Ghana’s economy has helped reduce the relative burden of its debt.
The Bank of Ghana’s report indicates that Ghana’s total public debt now stands at 55% of Gross Domestic Product (GDP), a significant improvement compared to previous years when the ratio was much higher.
This reduction signals progress in fiscal management, especially as the economy grew to GH¢1.4 trillion by March 2025.
The external debt component rose to US$28.5 billion in March 2025, up from US$28.3 billion at the end of December 2024, and now represents 28.5% of GDP.
Meanwhile, domestic debt increased to GH¢326.9 billion in March 2025, up from GH¢309.5 billion at the end of last year, accounting for about 23.4% of GDP.
The domestic debt figures also showed fluctuations over the quarter, with January and February 2025 figures at GH¢320.1 billion and GH¢328.0 billion, respectively.
On the fiscal front, the government’s deficit-to-GDP ratio stood at a modest 1.0% in March 2025, reflecting restrained public spending.
The primary balance a key indicator of fiscal health registered a surplus of 0.3% of GDP for the same period, suggesting that current policies are helping to stabilize the nation’s finances
Read the Bank of Ghana Summary of Economic And Financial May Report 2025 Here
Source: www.kumasimail.com / Kwadwo Owusu
