Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has disclosed that Ghana’s public debt rose to GH¢720.8 billion, representing 45.1 percent of Gross Domestic Product (GDP) as of the end of May 2026, while highlighting significant improvements in the country’s banking and external sectors despite growing global economic uncertainties.
Speaking at the 131st Monetary Policy Committee (MPC) press briefing on Wednesday, July 22, 2026, Dr. Asiama said the country’s fiscal performance during the first quarter of the year reflected prudent expenditure management, even though government revenue fell short of projections.
According to him, the debt stock increased from GH¢613.4 billion, equivalent to 42.8 percent of GDP, recorded at the end of December 2025.
The BoG Governor said Ghana’s banking sector continues to record strong gains, driven by improved capitalisation, stronger asset growth and better loan quality.
He announced that total banking sector assets increased by 30.7 percent to GH¢502.4 billion, supported by growth in customer deposits, borrowings and shareholders’ funds.
Dr. Asiama noted that the sector’s Capital Adequacy Ratio (CAR) improved significantly to 20.4 percent in June 2026, compared with 10.6 percent during the same period last year, indicating stronger financial resilience among banks.
He also revealed that the ratio of non-performing loans (NPLs) declined substantially from 23.1 percent to 16.1 percent, reflecting improvements in asset quality across the banking industry.
Despite these gains, he cautioned that elevated credit risk remains one of the sector’s key vulnerabilities and stressed the need for banks to continue adhering to prudential regulations to further reduce bad loans and strengthen financial stability.
Dr. Asiama also highlighted Ghana’s strong external sector performance during the first half of 2026, despite rising energy import costs triggered by renewed conflict in the Middle East.
He said the country’s trade surplus increased significantly to US$8.8 billion, up from US$5.8 billion during the same period in 2025.
According to the Governor, the improvement was largely driven by higher export earnings from gold and cocoa, which continued to support Ghana’s external accounts.
He further disclosed that the current account surplus expanded to US$5.1 billion, compared with US$4.1 billion recorded in the first half of last year.
On Ghana’s external reserves, Dr. Asiama said gross international reserves stood at US$12.9 billion by the end of June 2026, providing the country with approximately five months of import cover.
Although the figure declined from US$13.8 billion at the end of December 2025, the Governor explained that the reduction was mainly due to increased energy-related payments resulting from the Middle East crisis.
He, however, assured that the current reserve position remains adequate to cushion the Ghanaian economy against potential external shocks and sustain confidence in the country’s foreign exchange market.
Touching on developments in the foreign exchange market, Dr. Asiama said the Ghana cedi experienced demand pressures in May but has since shown signs of recovery.
He disclosed that as of July 17, 2026, the local currency had recorded a cumulative depreciation of 9.5 percent against the US dollar since the beginning of the year.
Despite the depreciation, he expressed confidence that Ghana’s improving external balances and adequate reserve buffers would help support exchange rate stability going forward.
Explaining the Committee’s policy assessment, Dr. Asiama said members acknowledged that renewed geopolitical tensions in the Middle East and disruptions to global trade routes continue to pose significant risks to global inflation and economic growth.
He noted that rising energy prices and supply chain disruptions could tighten global financial conditions, particularly for emerging and developing economies such as Ghana.
However, the Committee also observed that Ghana’s strong economic growth, improved trade performance, healthy reserve position, expanding private sector credit and improving business confidence provide important buffers against these external shocks.
The Governor added that although inflation is projected to rise gradually toward the Bank of Ghana’s medium-term target range, potential adjustments in utility tariffs and continued volatility in global energy prices remain key upside risks that the MPC will monitor closely.
He reaffirmed the Bank of Ghana’s commitment to maintaining macroeconomic stability, controlling inflation and implementing appropriate monetary policy measures to support sustainable economic growth and preserve confidence in the Ghanaian economy.
By 1960news.com
