Despite macroeconomic progress recorded over the past year, the living conditions of many Ghanaians remain difficult, with the high cost of living continuing to exert pressure on households, policy think tank Africa Policy Lens (APL) has reported.

In its maiden Ghana Wellbeing Tracker report, based on a nationwide survey of citizens and households, APL found that rising living costs have created what it describes as a “disconnect” between macroeconomic progress and real-life conditions.

“Notwithstanding this positive macroeconomic trajectory, the findings reveal a persistent disconnect between aggregate economic stabilisation and lived economic experiences,” the report stated.

“For a substantial share of households, the benefits of macroeconomic progress have yet to translate into tangible improvements in everyday living conditions, underscoring the continued economic strain faced by citizens despite improving headline indicators,” it added.

The report placed Ghana’s overall economic wellbeing at a Ghana Wellbeing Index (GWI) score of 58.5, reflecting what APL described as “an economic context that is stable yet inherently fragile.”

“Although the economy has moved beyond a phase of acute distress, the recovery process remains uneven and incomplete, with significant variation across households and regions,” it noted.

Persistent cost-of-living pressures

According to the report, the Cost-of-Living Pressure Index, which scored 44.7, “remains within the high-pressure category,” making it the weakest-performing dimension of overall economic wellbeing.

Despite a sustained decline in inflation, households continue to face “persistently high prices for essential goods and services,” the report said.

“This pattern underscores a critical distinction between inflation rates and absolute price levels. Although the pace of price increases has moderated, the general cost of living remains elevated.”

The report added that household purchasing power remains “constrained”, with affordability concerns continuing to dominate everyday economic experiences.

Other indices

APL reported that the Employment and Income Security Index, with a score of 59.3, suggests a moderate level of stability in labour market participation.

However, it cautioned that the aggregate figure “conceals significant underlying vulnerabilities, including income volatility, high levels of informality, and limited employment security.”

Similarly, the Household Income Momentum Index recorded a score of 52.9, indicating largely stagnant income trends.

“Although a segment of households reports modest income improvements, others continue to experience income declines, resulting in an uneven and fragmented recovery pattern,” the report stated.

These findings, it noted, “characterise a labour market that remains active but insufficiently resilient to generate broad-based and sustained improvements in household wellbeing.”

The SME and Local Business Conditions Index, which scored 56.9, “signals a business environment that remains operational but is performing below its productive potential.”

“Small and medium-sized enterprises (SMEs) continue to face persistent constraints, including subdued consumer demand, elevated input costs, and restricted access to affordable credit. These challenges undermine business expansion, investment, and employment creation.”

Given the central role of SMEs in Ghana’s economy—particularly as key sources of employment and household income—the report warned that their constrained performance poses “a significant drag on broader economic recovery.”

It added that weaknesses in the SME sector contribute to income stagnation at the household level and limit the transmission of macroeconomic stabilisation gains into widespread welfare improvements.

Strong financial resilience and optimism

In contrast, the Financial Stress and Resilience Index recorded a relatively strong score of 78.9, indicating that “households report a moderate level of financial stability alongside a degree of optimism about future economic conditions.”

“This suggests that, despite prevailing economic difficulties, expectations of improvement remain largely intact. Such forward-looking confidence constitutes a potential foundation for economic recovery, particularly if reinforced through timely and well-targeted policy interventions.”

APL announced at a press briefing in Accra that the Ghana Wellbeing Tracker—launched alongside the maiden report—will provide a quarterly, citizen-centred evaluation of economic conditions, focusing on how households experience and navigate day-to-day realities.