Ghana: Dramatic reduction in public debt thanks to reforms and growth
Ghana has been engaged since 2023 in a wide-ranging debt restructuring process, the positive effects of which are now beginning to show in public accounts. According to data released by the Central Bank following the 126th meeting of its Monetary Policy Committee on September 17, 2025, the country’s total public debt stood at 44.9% of GDP at the end of July.
This ratio represents a significant drop from the 61.8% recorded in December 2024 and is well below the forecasts of international partners. The IMF, for example, had projected debt at 66% of GDP in 2025, while Fitch Ratings still estimated it at 60% in its June assessment.
The improvement reflects Accra’s sustained efforts to restore fiscal health after a critical peak of 93% of GDP in 2022, the year the country defaulted on its debt. It also comes within a more favorable economic environment. Foreign reserves reached $10.7 billion in August 2025, while growth stood at 6.3% in the second quarter.
The Central Bank also highlighted the strong performance of the national currency. Supported by solid external sector results and an increased accumulation of reserves, the cedi strengthened against major currencies up to July 2025. Although it later came under some demand-related pressure, its cumulative appreciation still reached 21% against the US dollar as of September 12.
These results stem from reforms implemented under the IMF-supported program launched in May 2023, aimed at restoring macroeconomic stability and ensuring debt sustainability. In this context, Ghana reached a final agreement with its official creditors on January 29, 2025, to restructure its external debt.
These achievements led Fitch Ratings in June to upgrade the country’s sovereign rating to B- with a stable outlook, confirming renewed investor confidence in Ghana’s fiscal and economic trajectory.
