Finance Minister Dr Cassiel Ato Forson has announced that Ghana's public debt has declined significantly, with the country's debt-to-GDP ratio dropping to 45% as of the end of June 2026, describing it as a major milestone in the government's fiscal recovery efforts.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, 2026, the Finance Minister said the achievement places Ghana well ahead of both the International Monetary Fund (IMF) programme targets and the timeline set under the Public Financial Management Act.
2026 Mid-Year Budget Review: Government records 2.5% GDP surplus in 2025
According to him, the country's debt-to-GDP ratio has witnessed a steady decline over the past two years.
"The debt-to-GDP ratio fell from 61.8% at the end of 2024 to 44.7% at the end of 2025 and reached 45% by the end of June 2026. Ghana has therefore already achieved its debt target of 45% of GDP years ahead of both the IMF programme timeline and the targeted date established under the Public Financial Management Act," he told Parliament.
Dr Forson said prudent fiscal management has also reduced the burden of debt servicing, allowing government to redirect more resources to critical sectors of the economy.
He noted that debt servicing as a share of domestic revenue declined sharply from 55.7% in 2022 to 28.8% in 2025, freeing up billions of cedis for investments in education, healthcare, roads and other development priorities.
"This has freed up billions of cedis for schools, hospitals, roads and other national priorities," he said.
The finance minister further disclosed that Ghana's debt outlook has improved considerably, with both the World Bank and the IMF upgrading the country's debt sustainability assessment.
"For the first time since April 2014, Ghana's external and overall risk of debt distress has improved from high to moderate," he stated.
He added that the latest joint World Bank-IMF Debt Sustainability Analysis now classifies Ghana's debt as sustainable and capable of withstanding future economic shocks.
"The joint World Bank-IMF debt sustainability analysis has moved Ghana from unsustainable in 2023 to sustainable in 2025, and now, for the first time, to sustainable with room to absorb shocks," he said.
Touching on interest rates, Dr Forson said government had recorded significant improvements in the cost of borrowing, which he believes will provide relief for businesses and households.
According to him, the 91-day Treasury bill rate declined from 11% in December 2025 to 5.73% in June 2026, while the 182-day Treasury bill rate dropped from 12.52% to 7.69% over the same period.
He added that longer-term government bond yields have also eased considerably, with two-year, three-year and five-year bonds now trading between 11% and 12.6%, compared to about 20% a year earlier.
Dr Forson also announced that the Bank of Ghana's monetary policy rate has fallen from 27% in January 2025 to 14% in July 2026, describing the development as a boost for businesses seeking affordable credit.
"These are not merely lower interest rates. They are lower borrowing costs for households and businesses, creating room for entrepreneurs to invest, expand and create jobs," he said.
On the external sector, the finance minister said Ghana continued to record strong performance, with the current account posting a surplus equivalent to 8% of GDP in 2025, a trend he said has continued through the first half of 2026.
He also highlighted the performance of the cedi, stating that the local currency appreciated by 40.7% against the US dollar in 2025, reversing years of depreciation and restoring investor confidence in the economy.
Summing up the government's economic performance, Dr Forson expressed confidence that the country remains on course to achieve the targets outlined in the 2026 Budget.
"Taken together, these results demonstrate that the 2026 Budget is firmly on track. The targets we set at the beginning of the year were not aspirational. They were grounded in sound policy, disciplined implementation and realistic assumptions," he told Parliament.
NA/VPO
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