Dr Johnson Asiamah, BoG Governor
Ghana’s external debt dropped to GH¢330.2 billion in November 2025 from GH¢416.8 billion in December 2024 representing about 6.0 percent of Gross Domestic Product (GDP).
According to the Monetary Policy Report of the Bank of Ghana for 2025, the sharp decline in external debt was largely driven by the appreciation of the cedi stating that the stronger currency reduced the value of external debt in local currency terms by GH¢100.8 billion equivalent to about 8% of estimated GDP.
In contrast, domestic debt edged up slightly from GH¢309.8 billion to GH¢314.5 billion, reflecting moderate domestic borrowing in line with the 2025 Budget.
“Overall, the combination of exchange rate gains and slower debt accumulation significantly lowered Ghana’s total public debt stock by the end of November 2025. Public debt fell from 61.8% of GDP (revised) in December 2024 to 45.5% in November 2025. The pace of debt accumulation also reversed, shifting from 19.1% growth in 2024 to a contraction of 11.3% by November 2025”.
“Provisional data show that central government and government-guaranteed debt stood at GH¢630.2 billion (45.0% of GDP) at end-October 2025, down from GH¢726.7 billion representing 61.8% of GDP at end-December 2024”.the report stated
The report further indicated that of the total public debt, external debt amounted to GH¢319.2 billion (22.8% of GDP), while domestic debt totalled GH¢311.0 billion (22.2% of GDP), with the bulk of the decline coming from the external component.
Analysts have said that the overall reduction in public debt reflects currency appreciation, improved debt management, lower borrowing costs, and fiscal discipline, supported by a strong primary surplus.
It noted that on the international commodities market, prices of Ghana’s major export commodities traded mixed in 2025. Gold prices rallied during the year, rising by 63.4 percent to reach an average price of US$4,316.29 per fine ounce in December 2025, compared with US$2,641.45 per fine ounce during the same period in 2024
The trade balance for 2025 showed a substantial surplus of US$13.66 billion, significantly higher than the US$9.88 billion recorded in the comparative period in 2024. The improved trade surplus resulted from a surge in export proceeds during the year.
“In the domestic FX market, the Ghana cedi came under some marginal pressure in early 2026 after an impressive performance in 2025 with Demand pressures, largely from energy, commerce, and manufacturing, were partly offset by BoG FX intermediation, mining and remittance flows, and export proceeds from other corporate” Parts of the report stated
It however indicated that in the near term, the Ghanaian cedi is expected to remain stable, supported by continued BoG FX intermediation and strong reserve buildup.
By Ebenezer K. Amponsah