The World Bank has raised concerns over Ghana’s persistent poverty levels, revealing that 56.4% of Ghanaians remain in poverty despite recent economic growth.
The global financial institution said the country’s improving economic performance has not yet translated into significant improvements in living standards for a large proportion of the population.
Speaking at the launch of the 10th Ghana Economic Update, World Bank Division Director for Ghana, Liberia and Sierra Leone, Dr Robert Taliercio O’Brien, said widening regional and spatial inequalities were becoming a major concern.
According to Dr Taliercio O’Brien, the continued high poverty rate highlights a growing gap between Ghana’s headline economic growth figures and the everyday living conditions of citizens.
He noted that while the economy has recorded growth, the benefits have not been distributed widely enough to significantly improve household incomes and living standards across the country.
Ghana Faces Growing Poverty and Regional Inequality
The World Bank official also pointed to widening spatial disparities as another challenge facing Ghana’s economy.
The differences in economic opportunities and living conditions across various parts of the country suggest that economic growth is not benefiting all communities equally.
Dr Taliercio O’Brien explained that the situation represents a disconnect between Ghana’s reported economic performance and the realities experienced by many households.
Economic Growth Not Creating Enough Jobs
The World Bank also highlighted the structure of Ghana’s economic growth as a major concern.
According to the institution, some of the sectors driving economic expansion have limited capacity to create enough jobs for the country’s growing workforce.
This is particularly significant as Ghana’s young population continues to enter the labour market, increasing pressure on the economy to generate productive employment opportunities.
The World Bank warned that if economic growth continues to be concentrated in sectors with low employment absorption, Ghana could face increasing challenges in providing jobs for its expanding working-age population.
Dr Taliercio O’Brien described the situation as a structural imbalance requiring urgent attention.
The latest World Bank assessment highlights the need for Ghana to pursue inclusive economic growth, job creation, poverty reduction and regional development to ensure that economic progress translates into improved living standards for ordinary citizens.
Source: newsthemegh.com