Ghana’s public debt reached GHS 720.8 billion in May 2026, representing 45.1% of the nation’s Gross Domestic Product (GDP). This figure translates to US$61.5 billion in dollar terms, according to the Bank of Ghana’s July 2026 Summary of Financial and Economic Data.
The significant increase in public debt is largely attributed to a consistent rise in borrowing since January 2026. Domestic debt, specifically, saw a notable jump to GHS 379.1 billion in May 2026 from GHS 369.2 billion in April 2026. This domestic component now accounts for 23.7% of GDP, indicating a growing reliance on internal financing.
This upward trend in public debt highlights ongoing fiscal pressures within Ghana’s economy. The continuous accumulation of debt, particularly domestic, can strain government finances and potentially crowd out private sector investment. It also raises questions about the sustainability of current expenditure patterns and the effectiveness of revenue generation efforts.
The Bank of Ghana’s report confirms this trajectory, noting the debt’s steady climb from GHS 663.4 billion in January 2026. It rose to GHS 674.1 billion in February 2026, then to GHS 686.1 billion in March 2026, and further to GHS 695.9 billion in April 2026. This consistent increase underscores the challenges the government faces in managing its financial obligations.
While domestic debt has surged, the external debt component remained relatively stable at US$29.1 billion in May, a slight decrease from US$29.2 billion in April 2026. This external debt constitutes 21.4% of GDP. The stability in external debt suggests that the recent debt accumulation is predominantly an internal matter, though the overall burden remains substantial.
The government’s fiscal operations showed a surplus of 0.1% of GDP in March 2026 for the fiscal balance. The primary balance, which excludes interest payments, also recorded a surplus of 1.1% of GDP in March 2026. These surpluses, however, appear insufficient to offset the rapid growth in the overall debt stock.
The implications of this rising debt are far-reaching for Ghana’s economic stability. High debt levels can lead to increased interest payments, diverting funds from essential public services and development projects. It could also impact the country's credit rating, making future borrowing more expensive and challenging.
Policymakers will need to carefully monitor these trends and implement robust fiscal consolidation measures. The International Monetary Fund (IMF) is expected to disburse US$380 million to Ghana after July board approval, which may offer some short-term relief. However, sustainable long-term solutions are crucial to manage the burgeoning public debt and ensure economic resilience.
Investors and financial markets will closely watch the government’s strategies to address this debt burden. The ability to control borrowing and enhance revenue generation will be key indicators of Ghana’s economic health in the coming months.