External Debt Declines by GH¢86.7bn on Stronger Cedi
Ghana’s public debt stock declined sharply in the first eleven months of 2025, underpinned largely by the appreciation of the local currency and a slowdown in new debt accumulation.
According to the latest Monetary Policy Report by the Bank of Ghana, external debt fell by GH¢86.7 billion equivalent to about 6.0% of Gross Domestic Product (GDP), from GH¢416.8 billion in December 2024 to GH¢330.2 billion in November 2025.
The central bank attributed the sharp contraction primarily to the strengthening of the cedi, which reduced the local currency value of external obligations by GH¢100.8 billion, representing about 8% of estimated GDP.
Domestic debt, however, edged up marginally from GH¢309.8 billion to GH¢314.5 billion over the same period. The report explained that the increase reflected controlled domestic financing in line with the 2025 Budget framework.
Overall, the combined impact of exchange rate appreciation and slower debt accumulation significantly improved the country’s debt metrics.
The total public debt-to-GDP ratio declined from 61.8% (based on revised GDP estimates) in December 2024 to 45.5% by November 2025.
Similarly, the pace of debt accumulation reversed markedly, shifting from a growth rate of 19.1% in 2024 to a contraction of 11.3% by November 2025.
Provisional data showed that the stock of central government and guaranteed debt stood at GH¢630.2 billion (45.0% of GDP) at end-October 2025, compared with GH¢726.7 billion (61.8% of GDP) at end-December 2024.
Of the total public debt stock, external debt accounted for GH¢319.2 billion (22.8% of GDP), while domestic debt amounted to GH¢311.0 billion (22.2% of GDP), highlighting that the bulk of the decline stemmed from the external component.
The central bank noted that the improvement in debt indicators reflects the appreciation of the currency, effective debt management measures, lower borrowing costs, and fiscal discipline — evidenced by the posting of a significant primary surplus.
