Accra: The Member of Parliament for Manso Nkwanta, Tweneboa Kodua Fokuo, has raised concerns about the sustainability of the government's recent economic gains. He argued that the stability of the cedi and improvements in key macroeconomic indicators have been achieved through short-term interventions rather than lasting structural reforms.
According to Ghana Web, during an interview on Channel One TV, Fokuo highlighted that relying on foreign exchange interventions to support the local currency cannot be maintained indefinitely. "The cedi has been stable for a while, but that stability is now giving way. The most important question is how we achieved that stability and whether it is sustainable," he affirmed.
Fokuo pointed out that while the cedi had depreciated by about eight to 10 percent this year, the real concern was the method used to maintain its earlier stability. He noted that continuous foreign exchange interventions come at a significant cost to the nation and urged the government to focus on structural economic reforms to naturally generate foreign exchange.
He also scrutinized the government's celebration of a declining debt-to-GDP ratio, suggesting that it was largely due to exchange rate movements rather than actual debt reduction. Fokuo explained that the stabilization or appreciation of the cedi automatically reduces the cedi value of foreign-denominated debts, which improves the debt-to-GDP ratio without substantial debt repayment.
Furthermore, Fokuo criticized the government's revenue performance, highlighting that it had failed to meet its own targets despite positive macroeconomic figures. He questioned the significance of the reported 6.4 percent GDP growth rate, emphasizing the need for headline figures to translate into tangible improvements in the lives of ordinary Ghanaians.
Fokuo concluded that sustainable economic progress hinges on policies that expand production, improve productivity, and strengthen economic fundamentals, rather than temporary measures aimed at supporting macroeconomic indicators.