Renowned economist and development finance expert, Prof. Peter Quartey, is set to deliver a highly anticipated lecture at the Ghana Academy of Arts and Sciences (GAAS) on the topic: Debt, Investment, and Growth in Ghana: Did We Borrow to Consume?

The lecture on Thursday, March 13, which forms part of the Academy’s prestigious inaugural lecture series, will examine Ghana’s debt accumulation, investment patterns, and economic growth over the years.

Debt accumulation is a common feature among developing economies due to low domestic savings, high current account deficits, and significant capital imports needed to supplement domestic resources.

Prof. Quartey will analyse whether Ghana’s debt accumulation has translated into productive investment and economic growth or if it has primarily funded consumption and debt servicing.

Historical data reveals a rapid increase in Ghana’s debt-to-GDP ratio, which rose from 42.9% in 2013 to 61.9% in 2018, peaking at 82.9% in 2023 before slightly declining to 76.0% in 2024.

However, government capital spending—an essential measure of investment—has been on a downward trend. Capital spending as a proportion of total government expenditure fell from 24.5% in 2010 to 12.6% in 2023. Furthermore, capital expenditure as a share of GDP declined from 6.9% in 2010 to a mere 2.5% in 2023, raising concerns about the productive use of borrowed funds.

A significant shift in Ghana’s debt structure has seen the country move from multilateral lending to the more expensive international capital markets.

This shift brings fresh challenges in assessing the impact of debt on investment and economic growth.

Prof. Quartey, in briefs he shared with Myjoyonline.com, said his lecture will explore whether the increased debt levels have led to substantial economic development or if they have been channelled primarily toward debt servicing and consumption.

The broader sub-Saharan African context reflects similar trends, with debt-to-GDP ratios climbing from an average of 22.5% in 2007 to 59.8% in 2023. This growth in debt raises important questions about fiscal sustainability, economic resilience, and the role of government policy in managing debt for long-term economic stability.

The Ghana Academy of Arts and Sciences has a longstanding tradition of hosting distinguished scholars to present lectures on contemporary national and global issues.

Originally exclusive to invited guests and Fellows, the Academy’s lectures are now open to the general public due to their growing relevance and popularity.

Prof. Quartey’s analysis of Ghana’s debt-investment-growth nexus is expected to offer critical insights for policymakers, economists, and the general public.

His expertise in development finance, monetary policy, and private sector growth makes him well-positioned to provide a comprehensive assessment of Ghana’s fiscal trajectory, especially coming on the heels of the just outdoored 2025 Budget of the John Mahama-led new government.

About Prof. Peter Quartey

Prof. Peter Quartey is a leading economist with over 24 years of experience in development finance, monetary and financial sector development, and policy consulting. He holds a PhD in Development Economics from the University of Manchester, an MSc in Quantitative Development Economics from the University of Warwick, and an MPhil and BA in Economics from the University of Ghana.

He is currently the Director of the Institute of Statistical, Social, and Economic Research (ISSER) at the University of Ghana and serves on several boards, including the Agricultural Development Bank and The Hunger Project (Ghana). His research contributions include over 80 peer-reviewed publications, and he has held visiting scholar positions at institutions such as the International Monetary Fund (IMF) and the Brookings Institution in the United States.