Ghana's public debt reached GHS 720.8 billion in May 2026. This figure represents 45.1% of the nation's Gross Domestic Product (GDP). The debt stock also stood at US$61.5 billion in dollar terms.
The Bank of Ghana's July 2026 Summary of Financial and Economic Data confirmed this increase. The public debt has been rising steadily since January 2026. This continuous growth is largely due to increased borrowing from both domestic and external sources.
This rising debt trend is a critical indicator for Ghana's economic health. It highlights the government's reliance on borrowing to finance its operations and development projects. Such high debt levels can strain public finances and limit future spending options, impacting essential services and infrastructure.
The data from the Bank of Ghana shows a clear upward trajectory in the debt. In January 2026, the debt was GHS 663.4 billion. It then rose to GHS 674.1 billion in February 2026. By March 2026, it reached GHS 686.1 billion, and GHS 695.9 billion in April 2026.
Domestic debt has been a primary driver of this increase. It climbed to GHS 379.1 billion in May 2026 from GHS 369.2 billion in April 2026. This domestic component now accounts for approximately 23.7% of GDP. In contrast, external debt saw a slight decrease, standing at US$29.1 billion in May, down from US$29.2 billion in April 2026. External debt represents 21.4% of GDP.
The persistent increase in public debt signals potential fiscal pressures for the government. High debt servicing costs can divert funds from productive investments. This situation demands careful fiscal management and strategic economic policies to ensure long-term sustainability.
Ghana's fiscal balance showed a surplus of 0.1% of GDP in March 2026. The primary balance also recorded a surplus of 1.1% of GDP in the same month. While these surpluses are positive, the overall debt accumulation remains a concern.
Policymakers will need to address the underlying causes of this borrowing trend. This includes evaluating government expenditure and revenue generation strategies. The trajectory of the public debt will be closely watched by investors and international financial institutions. Sustainable debt management is crucial for maintaining investor confidence and economic stability in Ghana.