Ghana’s public debt burden eased significantly in February 2026, with the country’s total debt stock declining to 42.2 per cent of Gross Domestic Product (GDP), according to the latest economic data released by the Bank of Ghana.
The new figures point to growing signs of fiscal consolidation and economic stabilisation under Ghana’s post-debt restructuring recovery programme, offering cautious optimism for policymakers and investors monitoring the country’s financial health.
Data contained in the Central Bank’s May 2026 Summary of Economic and Financial Data showed that total public debt stood at GH¢674.1 billion in February 2026, compared with GH¢770.2 billion recorded in February 2025.
In GDP terms, the debt ratio declined sharply from 53.7 per cent to 42.2 per cent over the same period.
Debt Restructuring Supports Fiscal Recovery
The latest decline reflects the combined impact of debt restructuring measures, exchange-rate adjustments, nominal GDP growth and tighter fiscal management.
Analysts say the improvement represents one of the clearest signs yet that Ghana’s fiscal repair programme is beginning to gain traction after years of mounting debt pressures and macroeconomic instability.
Although the debt burden eased in cedi terms relative to GDP, the country’s debt stock in dollar terms increased from $49.6 billion in February 2025 to $63.1 billion in February 2026. This reflects exchange-rate valuation effects and the foreign currency composition of part of Ghana’s liabilities.
The data also revealed a sharp reduction in external debt exposure. External debt fell to GH¢313.6 billion, equivalent to 19.6 per cent of GDP, compared with GH¢442.2 billion or 30.8 per cent of GDP a year earlier.
Domestic debt, however, continued to rise in nominal cedi terms. The domestic debt stock increased to GH¢360.4 billion from GH¢328.0 billion recorded in February 2025, although its GDP ratio eased slightly from 22.9 per cent to 22.6 per cent.
Fiscal Balances Show Improvement
Government fiscal operations also recorded notable improvement during the first quarter of 2026.
The report showed that Ghana posted a cash primary surplus of 1.1 per cent of GDP by March 2026, compared with a balanced primary position of 0.0 per cent during the same period last year.
On a commitment basis, the primary balance improved to 1.2 per cent of GDP from 0.3 per cent in March 2025.
The overall fiscal balance equally strengthened. On a cash basis, government recorded a marginal surplus of 0.1 per cent of GDP, reversing the 1.3 per cent deficit recorded a year earlier.
Revenue mobilisation also improved moderately. Total revenue and grants increased to 3.6 per cent of GDP from 3.1 per cent in March 2025, while tax revenue rose from 2.6 per cent to 3.0 per cent of GDP.
Expenditure levels remained slightly above revenue at 3.9 per cent of GDP, though lower than the 4.1 per cent recorded in March 2025.
Sustainability Questions Remain
Despite the improving fiscal indicators, economists caution that Ghana’s recovery remains fragile.
While the falling debt-to-GDP ratio strengthens policy credibility, domestic debt levels remain elevated and expenditure pressures are expected to intensify as demands grow for infrastructure investment, social spending and economic relief.
The report also showed that net domestic financing declined sharply to 0.1 per cent of GDP from 1.1 per cent a year earlier, signalling reduced reliance on domestic borrowing.
For now, the latest figures suggest Ghana’s fiscal consolidation efforts are producing measurable results. However, the long-term challenge will be sustaining these gains beyond the current adjustment phase and avoiding a return to the debt accumulation cycle that has repeatedly destabilised the economy.
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