Ghana’s fiscal position showed notable shifts at the close of 2025, with total public debt falling to GH¢641 billion in December, down from GH¢644.6 billion in November 2025.

The year-on-year decline was even more significant, dropping from GH¢726.7 billion in December 2024, reflecting the combined effects of debt restructuring efforts and currency movements. According to the Bank of Ghana’s Summary of Economic and Financial Data released in March 2026, the debt stock fell by GH¢82.1 billion, from 61.8% of GDP in December 2024 to 45.3% of GDP in December 2025.

Dollar-denominated debt rises

Despite the decline in cedi terms, Ghana’s public debt rose in U.S. dollar terms, reaching $61.3 billion in December 2025, up from $57.2 billion in November and $49.4 billion in December 2024. The increase reflects exchange rate fluctuations, with the cedi trading around GH¢10.45 to the dollar at year-end. Nonetheless, the debt-to-GDP ratio improved substantially, signaling progress in fiscal consolidation.

External and domestic debt trends

The composition of Ghana’s debt showed contrasting movements. External debt stood at GH¢307.2 billion ($29.4 billion) in December 2025, down from GH¢330.2 billion in November and GH¢416.8 billion a year earlier, although dollar-denominated external debt edged slightly higher from $29.3 billion. Domestic debt, on the other hand, increased to GH¢333.8 billion, up from GH¢314.5 billion in November 2025 and GH¢309.8 billion in December 2024, highlighting continued reliance on domestic financing.

Revenue and fiscal performance

Government revenue strengthened toward year-end, with total revenue and grants reaching 16.1% of GDP in December 2025, up from 13.4% in November and slightly higher than 15.9% in December 2024. Domestic revenue remained the main driver at 15.9% of GDP, with tax revenue contributing 13.1%, underlining the role of tax mobilisation in supporting fiscal consolidation.

Total government spending aligned with revenue at 16.1% of GDP, down from 16.6% in December 2024, while capital expenditure remained modest at 1.4% of GDP. The overall fiscal deficit (cash basis) narrowed to 3.1% of GDP from 5.2% a year earlier, and a primary surplus of 0.5% of GDP was recorded, indicating tighter fiscal discipline.

For the government, the decline in the debt stock was among the sharpest recorded in Ghana’s history. For businesses, the rise in domestic debt signals ongoing pressure on local liquidity, while the increase in dollar-denominated debt points to continued exchange rate risks.

Overall, improvements in the debt-to-GDP ratio, fiscal deficit, and primary balance suggest that Ghana’s fiscal consolidation measures are yielding tangible results.