By Issah Olegor
The public debt has increased sharply by GH¢46.7 billion within just three months, according to the latest Summary of Economic and Financial Data released by the Bank of Ghana, raising fresh concerns over the country’s borrowing trajectory despite signs of macroeconomic recovery and a strengthening local currency.
The central bank’s July 2026 data show that the country’s total public debt rose from GH¢674.1 billion in February 2026 to GH¢720.8 billion by the end of May 2026, representing an increase of nearly 7 percent over the period.
The figures illustrate a steady month-on-month increase in the debt stock. Public debt climbed to GH¢686.1 billion in March, increased further to GH¢695.9 billion in April, before reaching GH¢720.8 billion in May, reflecting the government’s continued financing needs as it implements economic reforms while meeting domestic and external financial obligations.
Despite the increase in cedi terms, the country’s debt position improved when measured in United States dollars.
According to the Bank of Ghana, total public debt declined from US$63.2 billion in February to US$61.5 billion in May, largely due to the significant appreciation of the Ghana cedi against major international currencies during the period.
The stronger performance of the local currency has reduced the cedi value of Ghana’s foreign obligations when expressed in dollar terms, providing some relief to the country’s external debt profile.
However, the latest figures also reveal that the debt burden relative to the size of the economy has worsened.
The debt-to-GDP ratio increased from 42.2 percent in February to 45.1 percent in May, indicating that the country’s debt expanded faster than overall economic output during the review period.
The Bank of Ghana data further show that external debt rose from GH¢313.6 billion in February to GH¢341.7 billion in May, representing 21.4 percent of Gross Domestic Product (GDP).
Domestic debt also continued to rise, reaching GH¢379.1 billion in May, equivalent to 23.7 percent of GDP, as government relied more heavily on the domestic financial market to finance budgetary operations and refinance maturing debt obligations.
Economists are expected to closely monitor the pace of debt accumulation as Ghana continues implementing reforms under its International Monetary Fund (IMF)-supported economic programme, which seeks to restore debt sustainability, strengthen public finances and maintain macroeconomic stability.
The latest debt figures come at a time when the government has pointed to improvements in key economic indicators, including declining inflation, exchange rate stability and stronger international reserves, as evidence that the economy is gradually recovering from the severe fiscal and debt crisis that culminated in Ghana seeking IMF support in 2023.
The debt update also follows the government’s successful settlement of a US$700 million Eurobond debt service obligation earlier this month.
According to the Ministry of Finance, the payment was completed on July 2, 2026, and comprised US$525.2 million in principal repayments and US$174.8 million in interest payments.
The Ministry said the latest transaction brings the cumulative payments to Eurobond holders under the country’s Eurobond Debt Exchange Programme to approximately US$2.1 billion since January 2025.
Government has maintained that the Eurobond repayment was financed through pre-arranged funding arrangements and did not place undue pressure on the foreign exchange reserves.
The public debt has remained a major issue in national economic policy over the past several years. Following rapid debt accumulation, the country defaulted on parts of its external debt obligations in 2022, prompting a comprehensive domestic and external debt restructuring programme under the IMF’s US$3 billion Extended Credit Facility.
Since then, the government has pursued fiscal consolidation measures aimed at reducing budget deficits, restoring investor confidence and placing public debt on a sustainable path.
