Ghana’s public debt reaches GH¢720.8bn as domestic borrowing drives a three-month surge
Ghana's public debt climbed to GH¢720.8 billion in May 2026, driven mainly by domestic borrowing. Here's what the latest Bank of Ghana figures mean for the economy, debt sustainability and IMF reforms.
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Ghana’s public debt rose to GH¢720.8 billion in May 2026, according to the Bank of Ghana, reflecting increased domestic borrowing despite a decline in the country’s dollar-denominated debt. The latest figures highlight the government’s financing strategy as it continues implementing IMF-backed economic reforms.
ACCRA, Ghana — Ghana’s total public debt rose to GH¢720.8 billion at the end of May 2026, according to the latest data from the Bank of Ghana, underscoring the government’s continued reliance on domestic borrowing while pursuing economic reforms under an International Monetary Fund (IMF)-supported programme. The latest figures show the debt stock was equivalent to 45.1% of Gross Domestic Product (GDP), up from GH¢674.1 billion recorded in February and representing an increase of GH¢46.7 billion over a three-month period. The data forms part of the Bank of Ghana’s July 2026 Summary of Economic and Financial Data.
The increase continues an upward trend seen since the beginning of the year. Public debt stood at GH¢663.4 billion in January, before rising to GH¢674.1 billion in February, GH¢686.1 billion in March, GH¢695.9 billion in April, and GH¢720.8 billion in May.
While the cedi value of Ghana’s debt continued to increase, the picture was more favourable when measured in US dollars. The Bank of Ghana estimated total public debt at US$61.5 billion in May, compared with US$63.2 billion in February. The decline largely reflects the appreciation of the cedi against major international currencies during the period rather than a reduction in overall borrowing.
Domestic borrowing remains the main driver.
The latest data suggests that domestic borrowing remained the principal contributor to the increase in public debt. Domestic debt climbed to GH¢379.1 billion in May from GH¢369.2 billion in April and GH¢365.8 billion in March. It accounted for approximately 23.7% of GDP, highlighting the government’s continued dependence on the local debt market to finance expenditure and refinance maturing obligations.
External debt also increased in cedi terms to GH¢341.7 billion, equivalent to 21.4% of GDP, although the dollar value remained broadly stable at around US$29.1 billion. The contrasting trends illustrate how exchange rate movements can significantly influence Ghana’s reported debt stock when expressed in local currency.
Debt levels remain under close scrutiny.
The latest figures come as Ghana continues implementing fiscal consolidation measures under its IMF-supported economic recovery programme. The government has committed to restoring macroeconomic stability, improving revenue mobilisation and reducing debt vulnerabilities following the country’s debt restructuring process.
Earlier this month, the Ministry of Finance announced that Ghana had successfully settled a US$700 million Eurobond obligation ahead of schedule. According to the ministry, the payment comprised US$525.2 million in principal repayments and US$174.8 million in interest, bringing cumulative payments to Eurobond holders since January 2025 to approximately US$2.1 billion. Officials have maintained that the repayment was financed through pre-arranged funding arrangements without placing undue pressure on Ghana’s foreign exchange reserves.
What the figures mean
Public debt is one of the key indicators used by investors, credit rating agencies and multilateral lenders to assess a country’s fiscal health. Although Ghana’s debt-to-GDP ratio remains considerably below the levels recorded during the peak of the country’s recent economic crisis, the continued increase in borrowing highlights the challenge of balancing fiscal discipline with financing requirements for economic recovery and public investment.
Economists will also be monitoring whether stronger domestic revenue mobilisation, sustained economic growth and continued exchange rate stability can help moderate the pace of debt accumulation in the coming months. Future debt dynamics are likely to depend on government borrowing decisions, economic growth, inflation, exchange rate movements and the successful implementation of fiscal reforms agreed under the IMF programme. For businesses, investors and households, the trajectory of public debt remains an important indicator because it influences government borrowing costs, interest rates, investor confidence and the country’s broader macroeconomic outlook.
Key Takeaways
Ghana’s public debt increased in cedi terms by the end of May 2026, with domestic borrowing accounting for much of the rise.
Reported public debt stock in May 2026
Estimated share of Ghana’s gross domestic product
Increase in the public debt stock over the period
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01
Ghana’s public debt reached GH¢720.8 billion in May 2026.
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02
The debt stock was equivalent to 45.1% of GDP.
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03
Public debt increased by GH¢46.7 billion between February and May.
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04
Higher domestic borrowing remained the largest contributor to the increase.
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05
Dollar-denominated debt declined to US$61.5 billion, partly reflecting the stronger cedi.
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06
The government continues implementing fiscal and macroeconomic reforms under an IMF-supported programme.
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07
Ghana recently completed a US$700 million Eurobond repayment.
Public-finance context
Why This Matters
Ghana’s debt trajectory affects government spending, borrowing costs, investor confidence and the country’s ability to finance public services.
A lower debt-to-GDP ratio may signal improving fiscal conditions, but the nominal debt stock, interest costs, maturity profile and government revenue remain equally important.
Continued domestic borrowing can also place pressure on local financial markets, particularly where government financing competes with private businesses for available credit.
What to Watch Next
Domestic Borrowing
Continued reliance on the domestic market could increase interest costs and reduce credit available to businesses.
Cedi Performance
Exchange-rate movements will continue to affect the reported value of Ghana’s foreign-currency debt.
IMF Reviews
Programme assessments will provide further evidence on fiscal performance, reforms and debt sustainability.
Interest Payments
The cost of servicing debt will remain a major consideration for the national budget.
Revenue Performance
Stronger tax collection and economic activity could improve the government’s ability to manage existing obligations.
External Repayments
Future Eurobond and other foreign-debt obligations will test Ghana’s liquidity and financing strategy.
Frequently Asked Questions
Why did Ghana’s public debt increase?
The latest Bank of Ghana figures indicate that the increase was driven mainly by higher domestic borrowing used to finance government operations and refinance maturing obligations.
Why did debt fall in US dollar terms but rise in cedis?
A stronger Ghana cedi reduced the dollar value of some external obligations when translated between currencies, even though the total debt stock measured in cedis increased.
What is Ghana’s current debt-to-GDP ratio?
The Bank of Ghana estimated that public debt stood at 45.1% of GDP at the end of May 2026.
Is Ghana still under an IMF programme?
Yes. Ghana continues implementing economic reforms under an IMF-supported programme intended to restore fiscal and macroeconomic stability.
Does a lower debt-to-GDP ratio mean Ghana’s debt problem is over?
No. The ratio is only one indicator. Debt sustainability also depends on interest costs, government revenue, economic growth, currency stability and the timing of future repayments.
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