Ghana’s public debt falls to 49% of GDP in 2025 from 70.3% — World Bank

In 2025, Ghana's public debt fell to 49% of GDP from 70.3% in 2024, according to the World Bank. Robert R. Taliercio, the World Bank Division Director for Ghana, Liberia, and Sierra Leone, revealed this progress at the launch of the organization's Tenth Ghana Economic Update in Accra. The debt reduction was achieved three years ahead of the anticipated timeline set by the International Monetary Fund (IMF).

Taliercio attributed the improvement to Ghana's economic reform program, highlighting that the decline in public debt played a crucial role in restoring debt sustainability. The country also posted a primary fiscal surplus of 2.5% of GDP in 2025, surpassing the set target of 1.5%. These developments signify a significant enhancement in Ghana's fiscal position following years of mounting debt and economic challenges.

However, the World Bank cautioned that Ghana's economic recovery is still "structurally incomplete," suggesting that risks could undo some of the gains if reforms are not sustained. Taliercio emphasized that the debt outlook would remain sustainable if fiscal discipline is maintained and the restructuring of Ghana's external debt is completed.

The World Bank projected growth of 4.8% in 2026, expected to stabilize around 5% in the medium term, with inflation anticipated to stay within target parameters and debt to follow a sustainable trajectory.

To sustain the improvement in public finances, the World Bank stressed the need for stronger domestic revenue mobilization and continued efforts to tackle financial pressures in key sectors. Mr. Taliercio identified persistent difficulties in the energy and agriculture sectors as areas that require attention. He stressed that the reduction in the debt-to-GDP ratio should be seen not as the end of fiscal consolidation efforts but as a foundation for further reforms aimed at maintaining debt sustainability and enhancing economic resilience.