Ghana’s public debt fell sharply by GH¢82.1 billion in 2025, marking one of the largest annual declines in the country’s fiscal history, the Ministry of Finance has reported.
According to the ministry, the total debt stock dropped from GH¢726.7 billion (61.8% of GDP) in December 2024 to GH¢641 billion (45.3% of GDP) by the end of 2025, reflecting stronger fiscal outcomes, tighter expenditure controls, and enhanced debt management measures.
The fiscal turnaround was supported by a narrower deficit and a return to primary surpluses. The overall fiscal deficit on a commitment basis narrowed to 1.0% of GDP, well below the 2.8% target, while the primary balance posted a surplus of 2.6% of GDP, surpassing the 1.5% goal. On a cash basis, the deficit came in at 3.1% of GDP, and the primary balance recorded a 0.5% surplus.
The improvements coincided with a sharp moderation in inflation, which fell from 23.8% in 2024 to 5.4% in 2025, and further to 3.8% in January 2026. Correspondingly, interest rates declined, with the 91-day Treasury bill rate dropping from 27.7% at end-2024 to 11% in December 2025 and the average commercial bank lending rate easing from 30.25% to 20.45%.
The turnaround also strengthened currency stability. The cedi appreciated 40.7% against the U.S. dollar, 30.9% against the pound sterling, and 24% against the euro. External balances improved as the current account recorded a US$9.1 billion surplus, while gross international reserves rose to US$13.8 billion, providing 5.7 months of import cover.
Economic growth accelerated alongside fiscal consolidation, with provisional data showing real GDP growth of 6.1% in the first three quarters of 2025, driven by services and agriculture, while non-oil growth expanded by 7.5% over the same period.
The Ministry of Finance described 2025 as a broad-based macroeconomic recovery, emphasising the importance of continued fiscal discipline, structural reforms, and prudent monetary coordination to sustain gains, create jobs, and support economic transformation.
This milestone underscores Ghana’s strengthened economic fundamentals and renewed investor confidence, positioning the country for continued growth and financial stability in 2026.
