Ghana’s public debt stock has taken a positive turn, decreasing by 3.3% to GH¢736.0 billion in November 2024, down from GH¢761.0 billion in October 2024, according to the Bank of Ghana’s January 2025 Summary of Economic and Financial Data. This reduction is a testament to the government’s efforts to stabilize the country’s fiscal outlook.
The decline in public debt can be attributed to adjustments in both external and domestic debt levels. Ghana’s external debt fell significantly, dropping from GH¢453.7 billion in October 2024 to GH¢425.3 billion in November 2024. Domestic debt also saw a slight decrease, although it remains a significant component of the country’s debt portfolio, standing at GH¢311.7 billion in November 2024.
The report also highlights a notable improvement in Ghana’s debt sustainability metrics, with the public debt stock as a percentage of GDP declining to 72.2% in November 2024, down from 74.6% in October 2024. This reduction is a welcome development, given the country’s previous fiscal challenges.
Ghana’s government remains committed to fiscal consolidation, with measures in place to reduce debt and improve revenue mobilization. The drop in debt stock provides some relief as the country works to stabilize its economy and regain investor confidence. As the government continues to navigate the complexities of fiscal management, this positive trend is a step in the right direction towards achieving long-term fiscal stability.
