Despite the macroeconomic progress made in the past year, living conditions of Ghanaians continue to be poor, with high cost of living still hitting citizens hard, policy think tank the APL has reported.
In its maiden Ghana Wellbeing Tracker report, which surveyed citizens and households nationwide, the APL found that rising cost of living has created what it called a “disconnect” macroeconomic progress and real life situation in the country.
“Notwithstanding this positive macroeconomic trajectory, the findings reveal a persistent disconnect between aggregate economic stabilisation and lived economic experiences,” the APL’s report said.
“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,” the report added.
The report situated Ghana’s overall economic wellbeing at a GWI (Ghana Wellbeing Index) score of 58.5, reflecting what the 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 added.
Persistent Cost of Living Pressures
According to the report, the Cost-of-Living Pressure Index, with a score of 44.7, ”remains within the “high pressure” category,” thus making it “the weakest performing dimension of overall economic wellbeing.”
The report continued that despite sustained decline in inflation, households continue to contend with “persistently high prices for essential goods and services.”
“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 further stated that household purchasing power is still ”constrained”, and affordability concerns ”continue to shape and dominate everyday economic experiences.”
Other Indexes
In other other indexes surveyed, the APL reported that Employment and Income Security Index, with a score of 59.3, suggests ‘a moderate level of stability in labour market engagement.
However, it added that the aggregate measure ”conceals significant underlying vulnerabilities, including income volatility, high levels of informality, and limited employment security.”
“In a similar vein, the Household Income Momentum Index records a score of 52.9, pointing to largely stagnant income trajectories. 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 observed that the above findings ”characterise a labour market that remains active but insufficiently resilient to generate broad based and sustained improvements in household wellbeing.”
For SME and Local Business Conditions Index, which recorded a score of 56.9, the report said it ”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 economic structure—particularly as key sources of employment and household income—their constrained performance poses a significant drag on broader economic recovery.”
Weaknesses within the SME sector, the report indicated, contribute to the persistence of income stagnation at the household level and limit the transmission of macroeconomic stabilization gains into widespread welfare improvements.”
Strong Financial Resilience and Optimism
In contrast, the Financial Stress and Resilience Index records a relatively strong score of 78.9, which the report said, indicates 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.”
The APL announced at a press briefing in Accra that the Ghana Wellbeing Tracker, which it launched alongside unveiling the maiden report, will offer the nation a quarterly citizen-centred evaluation of prevailing economic conditions, focusing on how households experience and navigate day to day economic realities.