Ghana’s Economy Needs Stronger Domestic Fundamentals

Economic Analyst Emmanuel Boateng has observed that Ghana’s economy is showing signs of relative stability but cautioned that long-term growth will depend on strengthening internal economic fundamentals rather than excessive reliance on external factors.

Speaking on Business Breakfast on Zed 1019FM, Mr. Boateng said recent developments suggest the economy has reached a more stable phase compared to previous periods of volatility.

“I think we have reached a state of stability. The Ghanaian economy is relatively stable now, and things are getting better,” he stated.

However, he urged government to refocus economic management toward domestic drivers of growth, stressing that the economy should be shaped more by internal factors than by foreign influences.

“The Ghanaian economy should be more Ghanaian than foreign. External factors should not drive the economy substantially more than our internal factors,” Mr. Boateng emphasised.

He called on policymakers to revisit the country’s economic fundamentals, noting that while exchange rate stability is important, it should not be viewed as the sole indicator of economic health.

Recalling remarks made years ago by a former Vice President during a presidential campaign, Mr. Boateng noted that exchange rate movements are often used as a proxy for the strength of economic fundamentals. However, he noted that current exchange rate performance does not necessarily mean the underlying fundamentals are fully sound.

“The exchange rate we have now does not mean the fundamentals are fixed. They are still issues that need to be addressed,” he explained.

According to the analyst, focusing narrowly on exchange rate movements risks overlooking deeper structural challenges within the economy. He stressed that multiple factors, including fiscal discipline, productive capacity, and the overall health of key sectors must be considered in assessing economic progress.

Mr. Boateng concluded by urging government to pay closer attention to the broader foundations of the economy, saying sustainable stability can only be achieved by strengthening core fundamentals rather than relying on surface-level indicators.