High cost of living blurring Ghana’s economic recovery – APL Report

By: Eugene Dogbatse Atsu
Policy think tank, Africa Policy Lens (APL), has raised concerns that Ghana’s recent macroeconomic improvements are not reflected in the living conditions of citizens.

The concern was captured in APL’s maiden Ghana Wellbeing Tracker report, which assessed the economic experiences of households across the country.

According to the report, although the economy has shown signs of recovery and stability in recent months, the impact has not been strongly felt by ordinary Ghanaians.

The report described the situation as a disconnect between national economic progress and the everyday realities faced by citizens.

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

APL explained that many households are still under pressure due to the rising prices of basic goods and services, despite the decline in inflation.

The report gave Ghana an overall Ghana Wellbeing Index score of 58.5, indicating an economy that is recovering but remains fragile.

It further noted that the country’s Cost-of-Living Pressure Index scored 44.7, placing it in the “high pressure” category and making it the weakest aspect of economic wellbeing.

According to the think tank, slowing inflation does not necessarily mean prices have reduced, as the cost of essential items remains high across many communities.

The report stressed that affordability challenges and weakened purchasing power continue to dominate the daily lives of many Ghanaians, even as the country records improvements in key economic indicators.