Ghana’s public debt increased to GH¢720.80 billion in May 2026, highlighting the delicate balance the government must maintain as it works to restore fiscal stability while supporting economic recovery.
According to the latest Bank of Ghana Summary of Economic and Financial Data, released on July 21, 2026, the country’s total public debt rose from GH¢695.90 billion in April to GH¢720.80 billion in May—an increase of GH¢24.90 billion, or 3.58% within a month.
The debt stock also rose as a share of the economy, climbing from 43.6% of GDP in April to 45.1% in May.
Despite the increase in debt, the report indicates that government finances have remained relatively disciplined. As of March 2026, total revenue and grants stood at 3.6% of GDP, while total expenditure reached 3.9% of GDP.
The government also recorded a cash primary surplus of 1.1% of GDP, meaning revenue exceeded non-interest expenditure. On a commitment basis, the primary surplus stood at 1.2% of GDP, while both the cash and commitment overall balances posted modest surpluses of 0.1% of GDP.
These figures suggest that the government is maintaining fiscal restraint, a key requirement for stabilising public debt over the long term.
However, the latest debt figures show that tighter fiscal management alone has not yet translated into a lower debt stock.
Interestingly, while the total public debt declined in dollar terms from US$62.2 billion in April to US$61.5 billion in May, its value in cedis increased significantly.
The divergence reflects the impact of exchange rate movements, as well as the interaction between Ghana’s domestic and external debt obligations.
External debt remained broadly unchanged at US$29.1 billion in May, compared to US$29.2 billion in April. In cedi terms, however, it rose from GH¢326.8 billion to GH¢341.7 billion, accounting for 21.4% of GDP.
Domestic debt also increased from GH¢369.2 billion in April to GH¢379.1 billion in May, representing 23.7% of GDP.
Overall, domestic debt remained the larger share of Ghana’s total debt, making up about 52.6% of the total stock, while external debt accounted for 47.4%.
The Bank of Ghana data also shows that net domestic financing remained relatively low. It stood at 0.1% of GDP in March, down from 1.2% in February, suggesting the government has eased its reliance on domestic borrowing in recent months.
Economists often view this as a positive development because excessive domestic borrowing can drive up interest rates, reduce credit available to businesses and place additional pressure on the financial sector.
Compared with the same period last year, Ghana’s debt position has improved. The debt-to-GDP ratio of 45.1% in May 2026 is significantly lower than the 51.1% recorded in April 2025.
Nevertheless, the month-on-month increase serves as a reminder that the country’s fiscal recovery remains fragile.
The report also indicates that capital expenditure stood at 0.5% of GDP as of March 2026, suggesting that government spending on infrastructure and development projects remains restrained as part of ongoing fiscal consolidation.
Going forward, analysts say the challenge will be sustaining primary surpluses, improving revenue mobilisation and ensuring that borrowing remains prudent while creating enough fiscal space to fund infrastructure, social services and economic growth.
