Ghana’s public debt stock declined to 42.2% of its Gross Domestic Product (GDP) in February 2026. This represents a significant decrease from 53.7% of GDP recorded in February 2025.
This reduction signals an easing of the country’s debt burden. Fiscal operations showed early signs of consolidation under Ghana's post-restructuring recovery programme. This positive trend is affected by debt restructuring, changes in the exchange rate, growth in nominal GDP, and adjustments to tax and spending policies.
This improvement positions Ghana on a stronger path towards economic stability and could enhance investor confidence. The data from the Bank of Ghana’s May 2026 Summary of Economic and Financial Data confirms this positive trajectory. A lower debt-to-GDP ratio is crucial for Ghana’s long-term economic health. It reduces the risk of future financial crises and allows more government spending on critical services.
The Bank of Ghana’s May 2026 Summary of Economic and Financial Data reported the total public debt at GHS 674.1 billion in February 2026. This compares to GHS 770.2 billion in February 2025. In dollar terms, however, the debt stock rose to $63.1 billion in February 2026 from $49.6 billion a year earlier. This increase reflects how Ghana’s debt measures are sensitive to exchange rate changes.
External debt reduced substantially to GHS 313.6 billion, or 19.6% of GDP, in February 2026. This was down from GHS 442.2 billion, or 30.8% of GDP, in February 2025. Domestic debt, however, grew to GHS 360.4 billion, accounting for 22.6% of GDP, from GHS 328.0 billion a year earlier. This shows a decrease in the external debt share of GDP, while domestic debt remains a significant factor.
Ghana’s fiscal operations also showed improvement, with the government recording a cash primary surplus of 1.1% of GDP by March 2026. This is a significant improvement from a balanced primary position of 0.0% of GDP in March 2025. The overall fiscal balance also turned positive with a surplus of 0.1% of GDP by March 2026, compared to a deficit of 1.3% of GDP in March 2025. Revenue performance moderately improved, with total revenue and grants rising to 3.6% of GDP by March 2026 from 3.1% in March 2025. Net domestic financing also fell sharply to 0.1% of GDP in March 2026. This indicates reduced reliance on local borrowing, which is good for the credit market.
Despite these positive indicators, challenges remain. The debt stock is still large in nominal terms, and domestic debt continues to rise in cedi value. The government faces ongoing pressure for increased social spending and infrastructure development. Maintaining fiscal discipline beyond the current International Monetary Fund (IMF) supported adjustment period will be critical. The true test for Ghana’s government will be transforming this early consolidation into a lasting break from cycles of debt accumulation.