The public debt and impact of the on the economic growth in the Republic of Yemen for the period of 2005-2020

Abstract

The study aimed at explaining the impact of the public debt on the 
economic growth. The increasing burdens of the public debt have significant 
roles in the decline of the growth rate which made a big burden on the Yemeni 
economy and associated with a chronic public budget deficit and the study 
employed the analytical- descriptive. 
The most important findings of study are: highlighting the problems of the 
public debt and its burdens on the economy; and the public debt has a negative 
impact on the economic growth rate in the long term because the increase in 
the public debt level leads to a slow economic growth rate. 
Based on these findings, the study concludes with a number of 
recommendations and the most important ones are: it is important to activate 
the control of the borrowing process to best benefit from these loans and direct 
them to invest in the productive projects; to decrease the burdens of 
indebtedness; and to contribute in activating the economic activity and 
stimulating growth.