High Inflation in 2022 Pushed 850,000 Ghanaians into Poverty – World Bank Report
A recent report released by the World Bank has shed light on the severe economic crisis that struck Ghana in 2022, leading to a sharp rise in inflation rates and pushing an estimated 850,000 Ghanaians into poverty. The devastating consequences of the inflation surge were particularly felt in food security and poverty levels, impacting the most vulnerable segments of the population.
The report revealed that the year-on-year inflation rate skyrocketed from 14% to a staggering 54% between January and December, making it the highest level seen in the country since the early 2000s. The soaring inflation had a cascading effect on the cost of living, especially in relation to food prices, which outpaced the increase in non-food items. As a result, the real purchasing power of Ghanaians plummeted, hitting the poorest individuals and families the hardest.
The World Bank report conducted simulations during this period, and the results were alarming. Approximately 850,000 Ghanaians were pushed into poverty solely due to the escalating prices in 2022. For these individuals and families, temporary declines in incomes and consumption became entrenched, leading to a situation where poverty became not just persistent but, in some cases, even permanent.
Moreover, the impact on food security was devastating. The number of food-insecure Ghanaians surged from 560,000 in the last quarter of 2021 to a staggering 823,000 during the same period in 2022. As food prices continued to climb, a significant portion of the population struggled to afford sufficient food to meet their dietary needs, let alone maintain a healthy and active lifestyle.
The report calls for urgent and strategic policies by the government to pave the way for Ghana’s recovery and ensure a more stable and prosperous future for its citizens. Addressing the root causes of the inflation surge and implementing measures to protect the most vulnerable populations from the adverse effects of economic crises should be a top priority.
Safeguarding against future economic shocks will require a multifaceted approach that includes fiscal and monetary policies, social safety nets, and investment in sectors that can spur growth and job creation. By taking proactive and decisive action, Ghana can mitigate the impacts of economic crises and work towards building a more resilient and inclusive economy that benefits all its citizens.
