Ghana Cuts Public Debt by $9.4B, Lowers Deficit Targets 2025

Ghana has made significant fiscal progress in the first half of 2025, reducing its public debt by GH¢113.7 billion and cutting the debt-to-GDP ratio from 61.8% to 43.8%, marking the first negative debt accumulation in the country's history. This improvement is attributed to a stronger cedi, reduced borrowing, strict fiscal discipline, and ongoing debt restructuring efforts under the IMF program. Treasury bill rates have sharply declined, with the 91-day T-bill rate dropping from 27.7% to 14.7%, saving the government GH¢4.9 billion in domestic interest payments. The government also narrowed its fiscal deficit target for 2025 to between 2.8% and 3.8% of GDP, reflecting a better-than-expected first half with controlled expenditure and improved investor confidence. Despite these positive developments, risks remain including customs revenue shortfalls, wage pressures, and smuggling issues. Finance Minister Cassiel Ato Forson emphasized continued commitment to fiscal discipline, growth-friendly reforms, and improved public financial management to sustain these gains and translate them into better economic outcomes for Ghanaians.