Rédaction Africa Links 24 with Gideon Nicholas Day
Published on 2024-04-17 13:25:26
The research conducted in October 2023 revealed the impact of Ghana’s recovery from the COVID-19 pandemic in 2021. Despite progress, a significant portion of the population faced vulnerability to inflationary pressures, leading to a substantial increase in the cost of living. The economic landscape was further strained by the depreciation of the cedi, driven by high government debt and global disruptions in the supply chain due to events like the war in Ukraine. Ghana’s heavy dependence on imports exacerbated inflationary pressures, pushing nearly 850,000 individuals into poverty as prices continued to escalate.
By October 2023, the inflation rate had reached an average of 35 percent, with essential items like food, non-alcoholic beverages, health services, housing, water, electricity, transport, and education bearing the brunt of the impact. The closure of international markets to Ghana and disruptions in the supply chain contributed to the sharp decline in the value of the cedi, exacerbating the inflationary crisis. The closure of international markets, high debt levels, and global disruptions all played a role in the country’s economic challenges.
The report emphasized that informal workers, representing 89 percent of the national workforce with 83 percent in Accra alone, were most affected by the rising cost of living. These workers lacked access to vital safety nets such as pension schemes, poverty relief programs, cash transfers, and microfinance initiatives, leaving them highly vulnerable to economic shocks.
The situation highlighted the urgent need for policies to support vulnerable populations and address the root causes of inflation and economic instability. Efforts to strengthen social safety nets, enhance financial inclusion, and promote sustainable economic growth were paramount in mitigating the impact of rising prices on the most vulnerable segments of society.
In conclusion, the research conducted in October 2023 shed light on the challenges faced by Ghana as it grappled with the aftermath of the COVID-19 pandemic and the subsequent economic recovery. Addressing the root causes of inflation, supporting vulnerable populations, and fostering inclusive economic growth were crucial steps in building a more resilient and prosperous future for all Ghanaians.
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