Ghana’s Public Debt Declines Sharply from GH¢726bn to GH¢630bn – Ato Forson
By Praisebell Rosemond Larbi
Ghana’s public debt has recorded one of its most significant declines in history, falling by nearly GH¢100 billion within a year, a development the government describes as a major milestone in its economic recovery efforts.
Presenting the 2026 Budget Statement and Economic Policy to Parliament on Thursday, November 13, 2025, the Minister for Finance, Dr. Cassiel Ato Forson, announced that the country’s total public debt had dropped from GH¢726.7 billion, representing 61.8 percent of Gross Domestic Product (GDP) in 2024, to GH¢630.2 billion, or about 45 percent of GDP, by October 2025.
“This is the first time in more than a decade that Ghana has achieved a negative rate of debt accumulation. We have moved from a positive 19.1 percent in 2024 to a negative 13.3 percent in 2025. This demonstrates a clear reversal of the unsustainable borrowing trend that characterized the past,” Dr. Forson revealed.
The Finance Minister attributed the historic decline to a combination of prudent fiscal management, debt restructuring efforts, and a strengthened cedi. According to him, the fiscal discipline imposed under the current administration, coupled with more responsible borrowing and efficient expenditure controls, has begun to yield tangible results.
Dr. Forson also pointed to Ghana’s successful domestic debt exchange program and improved external debt negotiations as key contributors to the downward trend. “Our coordinated approach to debt management, supported by stronger macroeconomic indicators, has restored investor confidence and stabilized the debt trajectory,” he said.
He added that the appreciation of the cedi against major trading currencies had reduced the domestic cost of servicing external debt, further easing the pressure on public finances. “The stronger cedi has significantly lowered the value of our foreign debt obligations when converted into local currency, which is a major factor in this decline,” the Minister explained.
The Finance Minister assured Parliament that government remains committed to maintaining this trajectory through continued fiscal prudence, enhanced domestic revenue mobilization, and efficient public spending. “We are determined to keep our public debt on a sustainable path while investing strategically in productive sectors to drive inclusive growth,” he emphasized.
Economists and market watchers are expected to closely assess the sustainability of this improvement as Ghana continues its post-restructuring recovery and prepares for the next phase of fiscal consolidation and growth stabilization.
