The Institute for Economic Research and Public Policy (IERPP) has issued a stark warning: rising poverty rates in Ghana are exposing the nation’s economic growth as a worrying trend, despite a remarkable 6.0% GDP growth in 2025 and accelerated 6.4% growth in the first quarter of 2026. This figure represents a significant and troubling decline in household well-being, according to the World Bank’s latest assessment, which details 56.4% of the Ghanaian population remaining in poverty – a figure exceeding the country’s long-term poverty rate of 23.4% in 2016/17.
At the launch of the World Bank’s Tenth Ghana Economic Update in Accra, Dr Robert Taliercio O’Brien, the Division Director for Ghana, Liberia and Sierra Leone, revealed this alarming statistic, attributing it to a pattern of Ghana’s economic recovery that has largely failed to translate into meaningful job creation and income for households. The World Bank’s analysis points to a ‘narrow growth’ model, where economic expansion is concentrated in sectors with limited capacity to absorb Ghana’s rapidly growing labor force, resulting in a dearth of employment opportunities and broad-based household income.
Dr. Taliercio noted that Ghana’s economy grew by 6.0% in 2025, the fastest growth since 2019, and accelerated to 6.4% in the first quarter of 2026. However, this impressive growth has been overshadowed by a deepening challenge – a disconnect between the headline economic figures and the lived realities of many Ghanaians. The World Bank’s figures, particularly the 2016/17 Living Standards Survey, placed Ghana’s national poverty rate at 23.4%, a figure that underscores the scale of the problem.
The IERPP referenced Dr. Taliercio’s description of a ‘disconnect between the headline growth that is yet to reach most of the population.’ The Institute underscored that the current poverty situation should be viewed in the context of Ghana’s longer-term trend rather than solely focusing on GDP growth rates. It stressed that World Bank and Ghana Statistical Service data from the 2016/17 GLSS, which surveyed the country’s last full household survey, placed the national poverty rate at 23.4%, indicating a persistent challenge. The IERPP also cautioned against interpreting the 56.4% figure as a doubling of the 2016/17 poverty rate, explaining that the World Bank’s latest assessment reflects a broader measure of deprivation than the narrower national poverty line.
The Institute called for a renewed focus on policy measures that prioritize inclusive, job-rich growth, moving away from concentrating economic expansion solely on capital-intensive and extractive industries. It urged for greater attention to agriculture, value addition, manufacturing, construction, and MSME-led services, which they contend possess greater potential to generate employment and raise household incomes. Furthermore, the IERPP urged for a new full-scale Ghana Living Standards Survey, arguing that policymakers need up-to-date household-level data to effectively assess poverty and design targeted interventions. The Institute explicitly welcomed the World Bank’s assessment and stated that Ghana’s economic recovery remains ‘structurally incomplete,’ highlighting the need for a fundamental shift in policy priorities.”
The IERPP is advocating for a regionally targeted response to poverty rather than policies based solely on national averages, emphasizing that a lower GDP growth rate across labor-intensive sectors could have a greater impact on household welfare than higher growth concentrated in extractive industries. They are urging government to adopt targeted measures for Northern Ghana, where poverty rates, according to the World Bank, exceed 50% and are widening in comparison with the South. The IERPP further stressed that the situation requires a regionally targeted response rather than policies based solely on national averages. It welcomed the World Bank’s assessment and stated that Ghana’s economic recovery remains ‘structurally incomplete,’ reinforcing the imperative for a fundamental change in policy focus.
Source: Adom Online
