Fiscal Alert 11: Ghana’s Growing Public Debt and Its Implications for the Economy

Rising public expenditures in the context of persistently weak revenue performance have undermined Ghana’s fiscal and debt sustainability in recent years. As the coun- try’s fiscal risks remained high, credible fiscal consolidation was required to reverse the unfavorable debt dynamics and reduce domestic refinancing risks.

The fiscal management strategy of the new government that came into office in January 2017 aims at restoring fiscal discipline, reversing the fiscal deterioration it inherited and putting the public debt on a downward and sustainable path. Unfortunately, it does not appear that the government is winning the debt stability war, as total public debt continues to grow with serious implications for the economy.


This paper looks at the profile of Ghana’s public debt and debt servicing costs in the past decade, their implications for the economy and policy recommendations to address the debt albatross in order to support economic growth.

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