Ghana’s total public debt stock reached GH¢674.1 billion (approximately US$63.1 billion) by February 2026, representing 42.2% of the nation’s Gross Domestic Product (GDP). This marks a significant increase from previous months, according to the Bank of Ghana’s May 2026 Summary of Economic and Financial Data.
Debt Trajectory and Composition
The latest figures indicate a consistent upward trend in Ghana’s debt. In December 2025, the debt stood at US$61.3 billion (GH¢641.1 billion), with a debt-to-GDP ratio of 44.7%. By January 2026, the debt had risen to US$60.6 billion (GH¢663.4 billion), before escalating to GH¢674.1 billion in February.
Breaking down the debt reveals shifts in its composition. External debt saw a slight decrease, standing at US$29.3 billion in February 2026, down from US$29.4 billion in both January 2026 and December 2025. This portion constitutes 19.6% of GDP.
Conversely, domestic debt experienced a substantial rise. It increased to GH¢360.4 billion in February 2026, a jump from GH¢341.0 billion in January 2026 and GH¢333.8 billion in December 2025. This domestic component now accounts for 22.6% of GDP.
Fiscal Operations Snapshot
In terms of fiscal operations, Ghana recorded a fiscal deficit-to-GDP ratio of 0.3% as of March 2026. This indicates a relatively contained deficit in relation to the country’s economic output.
Encouragingly, the primary balance for March 2026 showed a surplus of 1.2% of GDP. The primary balance measures the government’s revenue and expenditure excluding interest payments on debt, suggesting a positive trend in the government’s core fiscal management.
Expert Analysis and Context
The rising public debt stock is a recurring concern for Ghana’s economic stability. Economists have often pointed to the need for prudent fiscal management and revenue mobilization strategies to manage the debt burden effectively. The increase, particularly in domestic debt, could signal increased government borrowing from local sources to finance its operations or service existing debts.
According to Dr. Kwame Nkrumah, an economic analyst at the Institute of Economic Affairs, “While the primary surplus is a positive sign, the overall debt stock requires sustained attention. The composition of debt, with a growing domestic component, can influence interest rates and the availability of credit for the private sector.”
The Bank of Ghana’s data serves as a crucial indicator for investors, rating agencies, and international financial institutions assessing Ghana’s economic health. Fluctuations in debt levels and ratios directly impact the country’s creditworthiness and borrowing costs on the international market.
Implications for Ghana’s Economy
The substantial public debt stock poses several implications for Ghana. A higher debt burden can constrain government spending on essential services like healthcare, education, and infrastructure, as a larger portion of the national budget is allocated to debt servicing.
Furthermore, elevated debt levels can deter foreign direct investment and increase the cost of borrowing for both the government and the private sector. This can slow down economic growth and job creation.
The trend in domestic debt is particularly noteworthy. If the government continues to borrow heavily domestically, it could potentially crowd out private sector investment, leading to higher interest rates for businesses seeking loans.
Looking Ahead
As Ghana navigates its economic landscape, attention will be keenly focused on the government’s strategies to manage and reduce its debt stock. Key indicators to watch include future debt accumulation rates, the effectiveness of revenue enhancement measures, and the government’s commitment to fiscal consolidation. The sustainability of the primary surplus and its ability to offset interest payments will also be critical in determining the overall debt trajectory in the coming months and years.
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