Ghana’s public debt reached GHS 720.8 billion in May 2026, equivalent to 45.1% of the nation’s Gross Domestic Product (GDP). This significant increase reflects a continuous upward trend in the country's financial obligations.
The Bank of Ghana’s July 2026 Summary of Financial and Economic Data revealed this substantial debt figure. The rising debt is primarily attributed to increased borrowing activities on both the domestic and external fronts. This trend has been consistent since January 2026, indicating persistent fiscal pressures.
This escalating debt burden places Ghana’s economic stability under scrutiny. High debt levels can constrain government spending on essential services and infrastructure, potentially hindering long-term economic growth. It also increases the country's vulnerability to external economic shocks and currency fluctuations.
The Bank of Ghana's report indicates a steady rise in public debt throughout 2026. The debt stood at GHS 663.4 billion in January, increasing to GHS 674.1 billion in February, and then to GHS 686.1 billion in March. By April 2026, it had further climbed to GHS 695.9 billion before reaching the May figure.
Domestic debt, the money owed within Ghana, saw a notable increase. It rose to GHS 379.1 billion in May 2026 from GHS 369.2 billion in April 2026. This domestic component now represents about 23.7% of GDP. In March 2026, domestic debt was GHS 365.8 billion, and GHS 360.4 billion in February 2026.
External debt, money owed to foreign entities, stood at US$29.1 billion in May 2026. This figure was slightly lower than the US$29.2 billion recorded in April 2026. External debt accounts for 21.4% of GDP, highlighting the country's reliance on foreign financing.
The continuous accumulation of debt raises questions about Ghana's fiscal management strategies. While the government's fiscal operations showed a surplus of 0.1% of GDP in March 2026, and a primary balance surplus of 1.1% of GDP in the same month, the overall debt trajectory remains a concern. These surpluses indicate that the government's revenues exceeded its non-interest expenditures during that specific period, but they have not been sufficient to halt the overall debt growth.
Analysts will closely monitor how the government plans to manage this growing debt. Strategies could include revenue mobilization, expenditure rationalization, or seeking debt restructuring. The implications for Ghana's credit rating and investor confidence will be significant. The ability to service this debt without compromising economic stability will be a key challenge for policymakers in the coming months.