Ghana's Debt-to-GDP Ratio Projected to Fall to 60% by End of 2025 Amid Fiscal Consolidation

Accra, Ghana – Ghana is on track to significantly reduce its public debt-to-Gross Domestic Product (GDP) ratio to an estimated 60% by the close of 2025, a notable achievement following a period of severe economic challenges. This projected decline marks a substantial improvement from a peak of 85.7% recorded in 2022, signaling the effectiveness of the nation's debt restructuring and fiscal consolidation efforts. The International Monetary Fund (IMF) has been a key partner in this recovery.

The country faced acute economic and financial pressures in 2022, leading to a default on external loans and prompting a request for assistance from the IMF. In response, Ghana secured a $3 billion, 36-month Extended Credit Facility (ECF) Arrangement, which has served as a credible anchor for macroeconomic policy adjustments and comprehensive reforms. These reforms included a domestic debt restructuring and an agreement with its Official Creditors Committee.

According to Julie Kozack, IMF Director of Communications, the recent debt restructuring agreement has "significantly improved Ghana’s debt service indicators." She described the development as "a particularly steep reduction in Ghana’s public debt" and a meaningful milestone toward restoring fiscal sustainability. The IMF has disbursed approximately $1.9 billion to Ghana under the arrangement, with the latest disbursement of $360 million in December 2024.

The government's commitment to further fiscal consolidation includes aiming for a primary fiscal surplus of 1.5% of GDP in 2025. This will be achieved through additional domestic revenue mobilization and rationalization of non-priority expenditures, while expanding social programs to protect vulnerable populations. Data from the Bank of Ghana indicated that as of June 2025, the country's total debt stock stood at GH¢613 billion, equivalent to 43.8% of GDP.

The rapid pace of Ghana's debt reduction is a stark contrast to trends often observed in G7 nations, where such sharp fiscal adjustments can be politically challenging. As noted by "The Mining Bartender" in a recent tweet, > "Ghana has cut debt from 82% to 60% of GDP. I can’t imagine this happening with a G7 nation. No one will take the medicine and cut spending." This highlights the significant political will and economic discipline demonstrated by Ghana in implementing stringent measures necessary for debt sustainability.