Economy experience high but unbalanced growth from mid-2000 to 2022 debt crisis – Former 1st Deputy Governor

Growing Public Deficits Due to Expensive Borrowing Strategies The former International Monetary Fund (IMF) Mission Chief further stated that Ghana’s debt story typifies the challenges of fiscal management in resource-rich, lower-middle-income countries, with high infrastructure gaps and a growing middle class.

Opoku-Afari who is a Non-Resident Fellow of Finance for Development Lab said Ghana’s growth performance hid major vulnerabilities, as it was obtained at the price of high and growing fiscal deficits, and was not diversified, nor based on private investment or high-quality public infrastructure.

After HIPC relief, he alluded that Ghana started the decade with low gross public debt, but within twenty years, returned to debt distress, demonstrating the cyclical nature of fiscal vulnerability and the difficulty of maintaining debt relief gains.