Ghana recorded a substantial reduction in its public debt stock over the past year, with official figures indicating a drop from approximately GH¢726.7 billion in December 2024 to about GH¢641 billion by December 2025. The development marks one of the most notable fiscal improvements in recent years and is being interpreted by analysts as evidence of tightening budget discipline and ongoing macroeconomic reforms.
The decline comes alongside broader economic indicators suggesting stabilization. Inflation has reportedly fallen for 13 consecutive months, reaching about 3.8 percent by late 2025, while the fiscal deficit narrowed significantly. Authorities say these trends reflect deliberate efforts to control spending, improve revenue mobilization, and restructure debt obligations under fiscal consolidation policies.
Government officials maintain that the improvement is not accidental but rather the result of targeted reforms aimed at restoring investor confidence and strengthening Ghana’s financial credibility in global markets. Economists say that sustained discipline will be critical to ensuring the gains are durable, especially given external pressures such as global commodity price volatility and interest-rate shifts.
Market observers note that declining debt levels could improve Ghana’s sovereign risk profile and reduce borrowing costs if the trend continues. However, they caution that structural challenges, including revenue collection efficiency and public-sector expenditure pressures, remain key determinants of long-term sustainability.
