However, it should be clear that debt is not a replacement for domestic revenue mobilisation. Meanwhile, debt levels have to remain sustainable so as to not undermine market confidence. To ensure that debt plays a meaningful role, it must be utilised for revenue generating activities that increase the productive capacity of the economy.
Countries in the region could benefit from the slower-than-expected monetary policy normalisation in major economies to build additional buffers, preferably aimed at increasing fiscal space and setting development priorities on course. The international community is eager to help.