The International Monetary Fund (IMF) expects Ghana’s public debt to fall to around 60% of gross domestic product (GDP) by the end of 2025, driven largely by the country’s recent debt restructuring and a series of fiscal and monetary reforms.

At a press briefing in Washington on Thursday, IMF Director of Communications Julie Kozack said the restructuring deal has “significantly improved debt service indicators,” helping Ghana move toward greater fiscal sustainability after several years of rising debt and macroeconomic instability.

“This drop can be described as a specifically steep reduction in Ghana’s public debt,” Kozack said, adding that the improved debt profile should enhance investor confidence and create space for renewed economic growth.

According to data from the Bank of Ghana, the country’s total public debt stood at GH¢613 billion as of June 2025, equivalent to 43.8% of GDP — a sharp decline from levels seen prior to the restructuring program.

The IMF emphasized that further progress will depend on the government’s ability to maintain fiscal discipline. Kozack noted that ongoing reforms are essential, including efforts to boost domestic revenue, enhance public financial management, and continue with budgetary consolidation.

Ghana’s current administration has implemented a series of measures aimed at stabilizing the economy, including tightening monetary policy, overhauling public finance systems, and adjusting electricity tariffs as part of broader cost-reflective pricing reforms. The IMF has praised these efforts as “bold” and critical to the country’s medium-term recovery.

Ghana entered debt restructuring talks in 2023 after years of fiscal slippages and external shocks, including the COVID-19 pandemic and commodity price volatility, pushed the country into a financing crisis. The agreement reached with creditors earlier this year has helped unlock continued support from the IMF under its $3 billion Extended Credit Facility program.

The Fund’s forecast signals cautious optimism about Ghana’s economic trajectory but underscores the need for sustained reform momentum to lock in recent gains.

Source:TheDotNews