- Public Debt Falls to 42.2% of GDP as Economy Show Early Improvement in 2026
Ghana’s public debt stock declined to 42.2 per cent of GDP in February 2026, signalling a continued easing of the country’s debt burden as fiscal operations showed early signs of consolidation under the post-restructuring recovery programme.
According to the Bank of Ghana’s May 2026 Summary of Economic and Financial Data, total public debt stood at GH¢674.1 billion in February 2026, equivalent to 42.2 per cent of GDP, compared with GH¢770.2 billion, or 53.7 per cent of GDP, in February 2025.
The latest data suggests that Ghana’s debt-to-GDP ratio has improved significantly over the past year, helped by the combined effects of debt restructuring, exchange rate movements, nominal GDP growth and fiscal adjustment.
In dollar terms, however, the debt stock rose to $63.1 billion in February 2026, from $49.6 billion in February 2025, reflecting the sensitivity of Ghana’s debt metrics to exchange-rate valuation effects and the structure of the country’s liabilities.
External debt stood at GH¢313.6 billion, equivalent to 19.6 per cent of GDP, in February 2026. In February 2025, this figure was GH¢442.2 billion, which accounted for 30.8 per cent of GDP. Domestic debt, meanwhile, increased to GH¢360.4 billion, representing 22.6 per cent of GDP, compared with GH¢328.0 billion, or 22.9 per cent of GDP, a year earlier.
The figures point to a major reduction in the external debt burden as a share of GDP, while the domestic debt stock has remained relatively elevated in cedi terms. This reflects the continuing importance of domestic financing in government operations, even after the Domestic Debt Exchange Programme.
On fiscal operations, the data show that the government recorded a cash primary surplus of 1.1 per cent of GDP by March 2026, compared with a balanced primary position of 0.0 per cent of GDP in March 2025. The primary balance on the commitment basis was also positive at 1.2 per cent of GDP, compared with 0.3 per cent in March 2025.
The overall fiscal balance also improved. On the cash basis, the government recorded a small surplus of 0.1 per cent of GDP by March 2026, compared with a deficit of 1.3 per cent of GDP in March 2025. On a commitment basis, the overall balance also stood at 0.1 per cent of GDP, compared with a deficit of 1.0 per cent a year earlier.
Revenue performance improved moderately, with total revenue and grants rising to 3.6 per cent of GDP by March 2026 from 3.1 per cent in March 2025. Domestic revenue also stood at 3.6 per cent of GDP, while tax revenue increased to 3.0 per cent of GDP, compared with 2.6 per cent a year earlier.
Expenditure, however, remained slightly above revenue, reaching 3.9 per cent of GDP by March 2026, compared with 4.1 per cent in March 2025. Capital expenditure improved to 0.5 per cent of GDP, from 0.3 per cent a year earlier, suggesting some fiscal space is being directed toward investment spending rather than only recurrent obligations.
Net domestic financing fell sharply to 0.1 per cent of GDP in March 2026, compared with 1.1 per cent of GDP in March 2025. This could indicate reduced reliance on domestic borrowing to finance government operations, an important signal for the local credit market at a time when interest rates are declining.
The data present a cautiously positive fiscal picture. Ghana appears to be recording stronger primary balances, lower overall deficits and a reduced public debt ratio, all of which are important for restoring policy credibility after the country’s debt crisis.
But the improvement remains fragile. The debt stock is still large in nominal terms, domestic debt continues to rise in cedi value, and expenditure pressures could intensify as public demand grows for stronger social spending, infrastructure delivery and relief from the cost-of-living pressures of recent years.
The central fiscal question is whether Ghana can sustain these gains beyond the immediate IMF-supported adjustment period. A lower debt-to-GDP ratio will matter less if it is not supported by durable revenue mobilisation, strict expenditure control and a credible limit on election-cycle fiscal slippages.
For now, the Bank of Ghana’s data show that Ghana’s fiscal repair is gaining traction. The harder test will be whether the government can turn early consolidation into a lasting break from the debt accumulation cycle that has repeatedly forced the country back into crisis-management programmes.
