Ghana’s public debt has climbed to GH¢720.8 billion in May 2026, with increased domestic borrowing emerging as the major force behind the latest surge in the country’s debt stock.

The new figures from the Bank of Ghana’s July 2026 Summary of Financial and Economic Data show that Ghana’s total public debt is now equivalent to 45.1% of Gross Domestic Product (GDP), while the dollar value of the debt stands at US$61.5 billion.

The increase marks another significant rise in the country’s borrowing levels, raising fresh concerns about debt management, fiscal discipline, and the government’s ability to maintain sustainable public finances.

According to the data, Ghana’s debt stock has been rising consistently since the beginning of 2026. The country’s public debt stood at GH¢663.4 billion in January before increasing to GH¢674.1 billion in February.

The upward movement continued in March when the debt stock reached GH¢686.1 billion, followed by another rise to GH¢695.9 billion in April. By May, the debt had crossed the GH¢720 billion threshold.

Domestic Debt Becomes Major Driver Of Increase

The latest debt increase has largely been driven by growth in domestic borrowing as government financing needs continue to put pressure on the local market.

The Bank of Ghana data revealed that domestic debt increased sharply to GH¢379.1 billion in May 2026 from GH¢369.2 billion recorded in April. This represents about 23.7% of GDP.

The domestic debt figure has risen steadily throughout 2026. In March, domestic debt stood at GH¢365.8 billion, after reaching GH¢360.4 billion in February. In January, it was estimated at GH¢341 billion.

The continuous increase reflects the government’s reliance on domestic financing instruments to support budget operations, meet financial obligations, and fund development programmes.

However, increased domestic borrowing can create challenges for the private sector by competing for available funds and potentially influencing interest rates. Analysts have often warned that excessive domestic borrowing could affect credit availability for businesses and households.

External Debt Remains Relatively Stable

While domestic debt recorded a significant increase, Ghana’s external debt position remained relatively stable during the period.

The country’s external debt stood at US$29.1 billion in May 2026, slightly below the US$29.2 billion recorded in April. The external debt represented approximately 21.4% of GDP.

The figure was unchanged from March 2026, when external debt was also recorded at US$29.1 billion.

The stability in external debt comes as Ghana continues efforts to manage its international obligations following years of debt restructuring initiatives and fiscal adjustment measures.

The government has been working to restore investor confidence, strengthen debt sustainability, and improve its financial position through fiscal reforms and improved revenue mobilisation.

Debt Growth Comes Despite Fiscal Surplus

Despite the rising debt stock, Ghana recorded positive developments in its fiscal operations during the period under review.

The fiscal balance-to-GDP position recorded a surplus of 0.1% in March 2026, indicating that government revenues slightly exceeded expenditures during the period.

The country also recorded a primary balance surplus of 1.1% of GDP in March 2026.

A primary surplus is often considered a key indicator of fiscal improvement because it shows that government revenue is sufficient to cover spending excluding interest payments on debt.

The positive fiscal balance suggests that ongoing measures to improve government finances may be yielding results. However, the continued rise in debt indicates that borrowing remains an important component of government financing.

Rising Debt Raises Questions Over Sustainability

The latest debt figures are expected to renew discussions about Ghana’s long-term debt sustainability and fiscal strategy.

Although the debt-to-GDP ratio remains below some of the levels recorded during previous years, the increase in nominal debt highlights the pressure government continues to face in financing public activities.

Economic observers have emphasised the need for stronger revenue generation, expenditure controls, and efficient allocation of borrowed funds to ensure that new debt contributes to economic growth.

The government’s ability to maintain fiscal discipline will remain critical as it seeks to balance infrastructure investment, social programmes, and debt repayment obligations.

Ghana’s Borrowing Path Under Close Watch

With public debt now standing at GH¢720.8 billion, attention will focus on how the government manages future borrowing requirements and whether fiscal improvements can be sustained.

The increase in domestic debt suggests that local financing remains a major pillar of government operations. While borrowing can support economic development when used effectively, rising debt levels require careful management to avoid renewed financial pressures.

As Ghana continues its economic recovery efforts, the trajectory of public debt will remain a key measure watched by investors, businesses, and citizens.

The challenge ahead will be ensuring that borrowing translates into productive investments capable of strengthening economic growth while keeping debt levels under control.