Fears that some African countries are returning to a period of “original sin” - characterised by excessive borrowing in foreign currency - appear somewhat premature. External debt levels are far lower now than they were 10 years ago. What’s more, there is evidence that borrowing is now being used to invest in infrastructure, which can help to boost long-run growth and in turn support higher levels of debt.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services