Ghana's total public debt has seen a significant decline of GH¢15.8 billion in December 2024, bringing the total debt stock to GH¢726.7 billion, according to the Bank of Ghana's March 2025 Summary of Financial and Economic Data. This represents a decrease from GH¢742.5 billion recorded in November 2024.

The decline in public debt is attributed to the expansion of the economy, which contributed to a reduction in the debt-to-GDP ratio. Despite the nominal increase in dollar terms, the total public debt rose to US$49.4 billion in December 2024, compared to US$48.3 billion in November 2024. The report also indicated that Ghana's total debt stock was equivalent to 61.8% of Gross Domestic Product (GDP).

The external debt stood at US$28.3 billion in December 2024, slightly higher than the US$28.0 billion recorded in November 2024. The rise in external debt was largely attributed to the depreciation of the Ghanaian cedi during the period. In the preceding months, external debt was US$32.1 billion in September 2024 before declining to US$28.3 billion in October 2024.

Domestic debt fell to GH¢309.8 billion in December 2024, representing 26.3% of GDP. This decline was primarily driven by a reduction in yields. In November 2024, domestic debt stood at GH¢311.4 billion.

In terms of the government's fiscal operations, the fiscal deficit-to-GDP ratio stood at 5.2% in December 2024. Additionally, the primary balance recorded a deficit of 1.2% of GDP during the same period. Meanwhile, Ghana's total economic size reached GH¢1.176 trillion as of December 2024, underscoring the expansion of the country's economy despite the debt fluctuations.

The decline in public debt is a positive development for Ghana's economy, which has been struggling with debt sustainability in recent years. The country's debt-to-GDP ratio has been a concern for economists and policymakers, and this decline is a step in the right direction. However, the government still needs to work on reducing its fiscal deficit and improving its fiscal discipline to ensure sustainable economic growth.

It is worth noting that Ghana is not alone in its debt struggles. Many African countries, including Nigeria and Ivory Coast, are also grappling with high public debt. In fact, a recent report listed Ghana, Nigeria, and Ivory Coast as the top three West African countries with the highest public debt. Therefore, Ghana's efforts to reduce its public debt are crucial not only for its own economy but also for the region as a whole.

As Ghana continues to navigate its debt challenges, it is essential for the government to implement policies that promote sustainable economic growth, reduce its fiscal deficit, and improve its debt management. With a growing economy and a declining debt-to-GDP ratio, Ghana is on the right path, but it still has a long way to go to achieve debt sustainability.