Ghana’s public debt is projected to fall significantly to 49% of its Gross Domestic Product (GDP) by the end of 2025. This marks a sharp decline from 70.3% recorded in 2024. The World Bank confirmed this positive outlook, highlighting substantial progress in Ghana’s efforts to achieve debt sustainability.
This reduction in public debt is a key gain under Ghana’s ongoing economic reform programme. Robert R. Taliercio, World Bank Division Director for Ghana, Liberia, and Sierra Leone, announced this development. He spoke at the launch of the World Bank’s Tenth Ghana Economic Update in Accra. The debt reduction is occurring three years ahead of the expected timeline set by the International Monetary Fund (IMF) programme.
This positive debt trajectory fits into Ghana’s broader economic recovery narrative. The nation has been navigating a challenging period marked by high inflation and currency depreciation. The government implemented difficult economic decisions, including fiscal consolidation measures. These actions aimed to stabilise the economy and restore investor confidence. The projected debt reduction signals that these measures are yielding tangible results. It also suggests a stronger fiscal position for the country moving forward.
Mr. Taliercio attributed the improved debt position to these difficult economic decisions. He noted that gains were also evident in Ghana’s fiscal and external sectors. Ghana achieved a primary fiscal surplus of 2.5% of GDP in 2025, exceeding its 1.5% target. A primary fiscal surplus means the government's revenue is more than its spending, not counting interest payments on its debt. This surplus further underscores the nation's commitment to fiscal discipline. It also shows the effectiveness of its revenue mobilisation strategies.
Despite this progress, the World Bank issued a cautionary note. Ghana’s economic recovery is still “structurally incomplete,” according to the institution. Risks remain that could reverse some of these gains if reforms are not sustained. Mr. Taliercio emphasized that maintaining fiscal discipline is crucial. Completing the restructuring of Ghana’s external debt is also vital for long-term sustainability. The World Bank projects growth at 4.8% in 2026, converging to around 5% over the medium term. Inflation is expected to remain within target, and debt on a sustainable trajectory.
Decision-makers must continue to prioritize fiscal prudence and structural reforms. The World Bank stressed that stronger domestic revenue mobilisation is essential. Addressing financial pressures in key sectors, such as energy and agriculture, also remains critical. The reduction in the debt-to-GDP ratio should serve as a foundation for further reforms. It is not the end of Ghana’s fiscal consolidation efforts. Sustaining these improvements will strengthen economic resilience and ensure lasting stability. Markets will closely watch the government's commitment to these ongoing reforms and its ability to manage external shocks.