Audio By Carbonatix
Policy think tank, Africa Policy Lens, has reported that although Ghana’s macroeconomic indicators have shown signs of improvement over the past year, many citizens continue to face harsh living conditions due to the high cost of living and persistent financial pressures.
In its maiden Ghana Wellbeing Tracker report, launched in Accra, the organisation said there remains a significant disconnect between macroeconomic recovery and the day-to-day realities experienced by households across the country.
The report, which surveyed citizens nationwide, noted that many families are yet to feel the benefits of recent economic stabilisation measures.
“Notwithstanding this positive macroeconomic trajectory, the findings reveal a persistent disconnect between aggregate economic stabilisation and lived economic experiences,” the report stated.
It added that although headline economic indicators have improved, “the benefits of macroeconomic progress have yet to translate into tangible improvements in everyday living conditions.”
According to the report, Ghana recorded an overall Ghana Wellbeing Index (GWI) score of 58.5, which the think tank described as reflecting an economy that is stable but still fragile.
The report observed that while the country has moved beyond a period of severe economic distress, the recovery process remains uneven across households and regions.
The Cost-of-Living Pressure Index emerged as the weakest-performing category, scoring 44.7 and remaining within what the report described as the “high pressure” range.
APL explained that although inflation has slowed, the prices of essential goods and services remain elevated, continuing to place a strain on household budgets and purchasing power.
The report stressed that many Ghanaians are still grappling with affordability challenges despite improvements in inflation figures.
“Although the pace of price increases has moderated, the general cost of living remains elevated,” the report noted, adding that affordability concerns continue to dominate everyday economic experiences.
On employment and income security, the report recorded a score of 59.3, indicating moderate labour market stability but also highlighting vulnerabilities such as income volatility, informality and weak job security.
The Household Income Momentum Index scored 52.9, suggesting that income growth remains sluggish and uneven among households.
APL further observed that the country’s SME and Local Business Conditions Index scored 56.9, reflecting a business environment operating below its full potential.
According to the report, many small and medium-sized enterprises continue to struggle with weak consumer demand, rising operating costs and limited access to affordable credit.
The report warned that the challenges facing SMEs are slowing broader economic recovery because of the sector’s critical role in employment creation and household income generation. It added that weaknesses within the SME sector continue to contribute to income stagnation and limit the impact of macroeconomic gains on ordinary citizens.
Despite the challenges, the report highlighted some optimism among households, with the Financial Stress and Resilience Index recording a relatively strong score of 78.9.
APL said this suggests that many citizens remain hopeful about future economic improvement despite current hardships.
The organisation announced that the Ghana Wellbeing Tracker will now serve as a quarterly citizen-centred assessment tool to monitor how households experience and navigate economic conditions across the country.
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