Public debt rises to GH₵628.8bn in July

By Praisebell Rosemond Larbi

Ghana’s total public debt rose by GHS15.8 billion in July 2025, bringing the stock to GHS628.8 billion (approximately USD59.9 billion), according to the Bank of Ghana’s September 2025 Summary of Economic and Financial Data.

The new figure represents 44.9 per cent of Gross Domestic Product (GDP) and highlights the delicate balance the government faces between fiscal consolidation and the need to finance key expenditures.

The July reading reverses a three-month stretch of declines earlier in the year, when a strong appreciation of the cedi helped lower the local-currency value of external debt.

 In June 2025, the debt stock stood at GHS613 billion, while in March it had peaked at GHS769.4 billion, underscoring the volatility of Ghana’s debt trajectory as exchange rate movements shift valuations.

Domestic Borrowing Fuels Increase

The uptick in July was driven mainly by domestic borrowing. Domestic debt climbed to GHS323.7 billion, equivalent to 23.1 per cent of GDP, up from GHS312.7 billion in June.

In contrast, external debt remained broadly stable at USD29.0 billion, or 21.8 per cent of GDP, suggesting that currency effects and limited new foreign borrowing kept the external component steady.

Fiscal Position Shows Mixed Signals

Despite the heavier domestic borrowing, Ghana posted a fiscal deficit of 1.4 per cent of GDP in July and a primary surplus of 0.7 per cent, indicating some progress in containing spending relative to revenue.

Economists note that the primary surplus revenue minus non-interest spending offers a temporary cushion, but sustained domestic financing could put upward pressure on interest costs and crowd out private-sector credit.

Broader Implications

According to analysts, the latest data underscore the importance of debt-management reforms and sustained fiscal discipline as Ghana continues its International Monetary Fund-supported programme.

A strong cedi earlier in the year provided valuation gains, but the July rebound illustrates how quickly domestic financing needs can offset those benefits.

With public debt now hovering near GHS630 billion, policy watchers say continued vigilance is critical to maintain investor confidence, contain borrowing costs, and avoid eroding the gains from recent currency stability.