IMF Projects 60% Debt-to-GDP for Ghana at End-2025
Communications Director of the International Monetary Fund (IMF), Julie Kozack, says Ghana’s recent debt restructuring agreements have led to a significant improvement in debt service indicators, creating room for economic recovery and investment inflows.
Responding to a question posed by NorvanReports during a press briefing on Thursday, September 11, 2025, Ms Kozack disclosed that public debt is projected to fall sharply from 82% of GDP in 2022 to around 60% by end-2025.
“That is a fairly steep reduction in public debt and marks a significant step toward durably restoring fiscal sustainability. To make this stick, Ghana will need to continue on the path of reform. Reforms such as boosting domestic revenue, strengthening public financial management to ensure expenditure efficiency, and maintaining fiscal discipline are essential to lock in the recent gains,” she stressed.
Finance Minister, Dr Cassiel Ato Forson, during the 2025 Mid-Year Budget Review, noted that Ghana’s public debt stock has fallen sharply from GHS 726.7 billion at end-December 2024 to GHS 613 billion in June 2025 — a reduction of GHS 113.7 billion within six months.
The decline represents a negative debt accumulation rate of 15.6%. Dr Forson attributed the drop to government’s fiscal discipline, prudent debt management, and a stronger cedi, noting that the debt-to-GDP ratio had improved from 61.8% in December 2024 to 43.8% in June 2025 — an 18 percentage point improvement.
On July 7, the IMF Executive Board completed the fourth review of Ghana’s $3 billion Extended Credit Facility (ECF) programme, disbursing $367 million and bringing total support to $2.3 billion since May 2023.
According to Ms Kozack, Ghana’s macroeconomic situation is showing signs of resilience, with growth outperforming expectations and the external position improving.
She further noted that the new administration has taken bold measures — including enacting a strong budget, tightening monetary policy, implementing public financial management reforms, and adjusting electricity tariffs — while continuing to make progress with debt restructuring efforts.
