Ghana’s Public Debt Hits GH¢684.6bn in Q3 2025 Despite Strong Year-Long Decline

Ghana’s public debt rose to GH¢684.6 billion in the third quarter of 2025, marking an increase of GH¢71.6 billion compared to the previous quarter, according to new data from the Bank of Ghana. Despite the quarterly jump, the broader fiscal picture reflects progress as the country continues to unwind its earlier debt pressures.

The central bank’s latest Summary of Economic and Financial Data shows that although the debt-to-GDP ratio climbed to 48.9% from 43.8% in June, the overall trend since the beginning of the year remains encouraging. Ghana has managed to steer its debt downward significantly, thanks to ongoing economic reforms and stabilisation measures.

Between January and September 2025, the country successfully reduced its total public debt by GH¢67.5 billion. Even more striking is the year-on-year performance: Ghana’s debt level has fallen by GH¢125.4 billion compared to September 2024. This improvement highlights the government’s sustained commitment to fiscal discipline.

External debt was the biggest contributor to the Q3 rise, jumping sharply from GH¢300.3 billion in June to GH¢367 billion in September. Still, on a broader timeline, external liabilities have seen dramatic corrections—dropping GH¢432 billion so far this year and GH¢508.6 billion year-on-year. External debt now accounts for 26.2% of GDP, a significant improvement from past years.

On the domestic front, Ghana’s internal debt remained relatively stable, inching up slightly to GH¢317.6 billion from GH¢312.7 billion in June. With nominal GDP estimated at GH¢1.4 trillion, the revised ratios offer a clearer picture of a country still navigating short-term challenges while making meaningful long-term fiscal gains.

source: citi newsroom