Ghana’s Economic Struggles: Impact on Ordinary Ghanaians and Steps for Survival
Ghana’s poor economic management, new taxes, high dollar-to-cedi exchange rate, high inflation and high-interest rate are all impacting ordinary Ghanaians on a daily basis.
According to the World Bank’s 2023 report, E-Levy, Ghana’s poor economic management, new taxes, high dollar-to-cedi exchange rate, high inflation and high-interest rate have all had a negative impact on the poor.
But accessing the impact of soaring inflation on food security and poverty the world bank says it works with the Ghana Statistical Service has disclosed 850,000 people were pushed down the poverty line. Close to 850 thousand individuals are estimated to have been pushed into poverty during 2022 on account of a larger-than-expected rise in prices.
The report recommends that the government take steps to address these problems, such as reducing taxes, stabilizing the currency, and reducing inflation. The government should also invest in education and job creation to help the poor improve their lives.
Below are some of the decisions of the government that further worsened the plight of many Ghanaians.
- Poor economic management: The government’s poor economic management has led to a number of problems, including high inflation, high interest rates, and a depreciating currency. This has made it more difficult for businesses to operate and for people to make ends meet.
- New taxes: The government has introduced a number of new taxes, such as the E-Levy, which has made it more expensive for people to do basic things like send money and pay for goods and services. This has put a strain on people’s budgets and made it harder for them to save money.
- High dollar to cedi exchange rate: The high dollar-to-cedi-exchange rate has made it more expensive for Ghanaians to import goods and services. This has led to higher prices for food, fuel, and other essential goods.
- High inflation: High inflation has eroded the purchasing power of Ghanaians. This means that they are able to buy less with their money. This has made it harder for people to afford basic necessities, such as food, shelter, and clothing.
- High interest rates: High interest rates make it more expensive for people to borrow money. This has made it harder for people to start businesses and invest in their future.
The poor in Ghana are facing a number of challenges as a result of the country’s poor economic management, new taxes, high dollar to cedi exchange rate, high inflation and high interest rate. These challenges are making it more difficult for the poor to live and survive.
Ghana’s economic struggles have had a significant impact on ordinary Ghanaians. The country’s economy has been in a recession since 2020, and the COVID-19 pandemic and poor economic management decisions by the ruling NPP has only made things worse.
Some of the most common challenges that ordinary Ghanaians are facing include:
- High unemployment: The unemployment rate in Ghana is currently around 13%, and it is even higher for young people. This means that many people are struggling to find work and support themselves and their families.
- Low wages: Even for those who are employed, wages are often low. This means that people are struggling to make ends meet, even for basic necessities such as food, shelter, and clothing.
- High inflation: Inflation in Ghana is currently around 25%, which means that the prices of goods and services are rising rapidly. This makes it even harder for people to afford the things they need.
- Currency depreciation: The Ghanaian cedi has depreciated significantly in recent years, which means that it takes more cedis to buy the same amount of goods and services. This has made it even harder for people to afford the things they need.
These challenges are having a significant impact on the lives of ordinary Ghanaians. Many people are struggling to make ends meet, and they are facing increased poverty and hardship. The government has taken some steps to address the economic crisis, but it is unclear whether these measures will be enough to turn things around.
In addition to the above, here are some other ways that Ghana’s economic struggles are impacting ordinary Ghanaians:
- Increased crime: The economic crisis has led to an increase in crime, as people resort to crime to make ends meet.
- Deteriorating infrastructure: The economic crisis has led to a deterioration of infrastructure, such as roads, bridges, and hospitals. This makes it difficult for people to get around and access essential services.
The economic struggles in Ghana are a complex issue with no easy solutions. However, it is important to understand the impact that these struggles are having on ordinary Ghanaians. By understanding the challenges that people are facing, we can better support them and work to find solutions to the economic crisis.
In addition to the above, here are some other tips that may help the poor in Ghana to live and survive:
- Network with other poor people: Networking with other poor people can help to provide support and advice. It can also help to identify opportunities for collaboration and mutual aid.
- Be resourceful: The poor often have to be resourceful in order to survive. They may need to be creative in finding ways to make money or to get the things they need.
- Stay positive: It is important to stay positive in the face of adversity. This can help to maintain hope and motivation.
- Reduce your spending: This may seem obvious, but it’s important to cut back on non-essential items in order to save money. This could mean eating out less, canceling unnecessary subscriptions, or walking or biking instead of taking public transportation.
- Find new sources of income: If you’re already struggling to make ends meet, it’s important to find new ways to bring in money. This could mean starting a small business, doing odd jobs, or looking for government assistance programs.
These problems outlined earlier in this post are having a significant impact on ordinary Ghanaians. They are making it more difficult for people to make ends meet, save money, and plan for the future. This is leading to increased poverty, inequality, and social unrest.
READ: 2023 World’s Most Corrupt And Least Corrupt Countries Out (Africa Takes The Lead)
The government needs to take steps to address these problems. This includes improving economic management, reducing taxes, stabilizing the currency, and reducing inflation. The government also needs to invest in education and job creation to help people improve their lives.
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