Ghana’s public debt has seen a historic drop in the first half of 2025, as Finance Minister Dr. Cassiel Ato Forson presented a detailed breakdown during the mid-year budget review to Parliament.
According to the Minister, this decline is a result of deliberate fiscal discipline, effective debt management, and a stronger local currency under the current administration.
“Our commitment to fiscal discipline through prudent debt management and exchange rate appreciation has resulted in a significant improvement in Ghana’s debt profile”
Dr. Cassiel Ato Forson, Minister of Finance
He stated that Ghana’s total public debt declined from GHS 726.7 billion at the end of December 2024 to GHS 613 billion by the close of June 2025.
This marks a reduction of GHS113.7 billion in just six months, a development he described as unprecedented in Ghana’s financial history. In a significant milestone, Ghana has registered a negative debt accumulation rate of 15.6% for the first time in its history.
He attributed this rare achievement to “consistent policy enforcement and exchange rate gains,” noting that these have positively influenced the country’s overall debt profile.
Ghana’s public debt “as a percentage of GDP,” also recorded a dramatic shift over the same period. Dr. Forson told the House that the debt-to-GDP ratio dropped from 61.8% in December 2024 to 43.8% by June 2025.
The improvement represents renewed fiscal credibility for the country at a time when global and domestic observers have kept a close eye on Ghana’s post-crisis recovery path. This new ratio marks one of the lowest levels of public debt to GDP Ghana has recorded in nearly a decade, significantly enhancing investor confidence and economic outlook.
Foreign Debt Composition Drops
Alongside the general debt reduction, the composition of Ghana’s foreign debt has also improved.
“Mr. Speaker, Ghana’s foreign debt as a percentage of total public debt declined from 57.4% as at the end of December 2024 to 49% by the end June 2025”
Dr. Cassiel Ato Forson, Minister of Finance
He added that this shift signals reduced exposure to external shocks and greater reliance on domestic resources. It also means the country has improved its “resilience against currency volatility and global interest rate hikes,” which have in the past strained Ghana’s debt servicing capabilities.
The mid-year budget review was the first under President John Dramani Mahama’s renewed term, with his administration still in the process of fully forming its boards and completing ministerial vettings.
However, the data presented suggests that inherited economic downturns have now been redirected through targeted interventions.
While some critics have argued that the economic gains might still be riding on previous government measures, the Mahama-led government is now being credited with cementing a stable fiscal framework in record time.
The debt drop, in particular, is seen as a marker of renewed confidence in Ghana’s macroeconomic environment.
As Parliament continues to debate the broader implications of the mid-year review, attention is shifting toward how the administration will sustain this momentum in the second half of the year and beyond.
For now, the figures appear to point to an optimistic outlook backed by tangible gains in public financial management.
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