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Friday, May 23, 2025

Ghana’s public debt slightly reached $49.5bn by March 2025


Ghana’s total public debt stock edged up marginally to $49.5 billion as of March 2025, according to the latest figures released by the Bank of Ghana.

This represents a small increase from $49.4 billion recorded in February 2025, despite the Ghanaian cedi strengthening considerably against the US dollar during the period.

Measured in local currency terms, the debt stood at GH₵769.4 billion, up from GH₵768.1 billion the previous month, accounting for 55% of the nation’s Gross Domestic Product (GDP).

The slight increase reflects a relatively stable debt position amid favourable currency movements, which have bolstered the cedi’s value.

Interestingly, the domestic portion of the debt decreased slightly from GH₵328 billion to GH₵326.9 billion.

This reduction may be attributed to the government’s cautious approach towards issuing treasury bills, which has tempered domestic borrowing levels.

Meanwhile, external debt rose modestly from GH₵440.1 billion (\$28.3 billion) to GH₵442.5 billion (\$28.5 billion).

In terms of GDP composition, external debt accounted for 31.6%, while domestic debt contributed 23.4%.

The Bank of Ghana’s report also highlights the cedi’s remarkable appreciation against major currencies.

The local currency surged by 24.1% against the US dollar, 16.2% against the British pound, and 14.1% against the Euro — a significant reversal following years of depreciation.

As of May 2025, the cedi was trading at approximately GH₵11.85 to the US dollar, GH₵15.84 to the British pound, and GH₵13.34 to the Euro.

The strengthening currency, coupled with prudent debt management,t signals a more positive outlook for Ghana’s economic stability moving forward.

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