Ghana’s public debt rose sharply by GH¢15.8 billion in July 2025, bringing the total to GH¢628.8 billion (about $59.9 billion), according to the Bank of Ghana’s latest economic and financial data. The uptick comes after three consecutive months of declines and highlights the delicate balance between government borrowing and currency valuation.
The increase now represents 44.9% of the country’s Gross Domestic Product (GDP), reversing gains from earlier this year when a stronger cedi helped reduce the debt stock. The new figures show how quickly exchange rate movements can alter Ghana’s fiscal outlook, especially for a country managing both external and domestic borrowing pressures.
July’s figure compares with GH¢613 billion in June 2025 and GH¢769.4 billion in March 2025, underscoring the volatility of Ghana’s debt trajectory. Analysts say the numbers reflect a mix of currency effects, new borrowing needs, and seasonal fiscal spending patterns.
While external debt remained broadly unchanged at $29.0 billion (21.8% of GDP), domestic debt climbed to GH¢323.7 billion (23.1% of GDP) from GH¢312.7 billion the previous month. Economists warn that rising domestic borrowing could increase financing costs for the government and crowd out private sector credit.
On the fiscal side, Ghana posted a deficit-to-GDP ratio of 1.4% in July, but the primary balance showed a small surplus of 0.7%. While the surplus offers some relief, the overall numbers signal ongoing pressure on public finances and the need for careful debt management to sustain investor confidence.
source: citi newsroom