Financial Development in the Face of Rising Public Debt in Ghana: A Qualitative Study

Abstract

This qualitative study explored the relationship between financial development and public debt within the context of Ghana. It sought to comprehend the impact of rising public debt on financial development and the broader implications for economic growth and stability in Ghana, a lower middle-income country grappling with high debt levels and fiscal challenges. The study thus employed a qualitative research paradigm, gathering data through face-to-face interviews with sixteen (16) economic and financial experts from five (5) prominent banks in Ghana. This method allowed for an in-depth appreciation of the subjective perceptions and insights of stakeholders directly involved in or affected by Ghana’s financial and public debt management sectors. Ethical considerations were meticulously adhered to, ensuring informed consent and confidentiality of the participants. The study revealed a moderate pace of financial development hindered by high-interest rates and limited access to credit. Public debt was perceived as excessively high, posing significant financial stability and economic growth risks. Policy recommendations from the study emphasize the need for fiscal discipline, improved regulatory frameworks, enhanced financial inclusion, and strategic investment in infrastructure and education. This study contributes to the literature by providing a qualitative insight into the complex dynamics between financial development and public debt in Ghana, a topic that has been less explored in empirical studies, especially from a qualitative perspective.