56.4% of Ghanaians remain in poverty despite economic growth – World Bank

More than half of Ghanaians remain in poverty despite recent economic growth, the World Bank has warned, raising concerns about whether the country's recovery is improving living standards across the population.

The bank says 56.4% of Ghanaians remain in poverty, while regional disparities are widening.

World Bank Division Director for Ghana, Liberia and Sierra Leone, Dr Robert Taliercio O'Brien, disclosed the figure at the launch of the 10th Ghana Economic Update.

“56.4% of Ghanaians remain in poverty, and spatial disparities are widening,” Dr Taliercio O'Brien said.

His assessment points to a disconnect between the performance of the wider economy and the economic circumstances of a significant proportion of the population.

Growth without enough jobs

The World Bank says one of the major challenges is the structure of Ghana's economic growth.

According to Dr Taliercio O'Brien, growth is being driven by sectors that have limited capacity to absorb workers, at a time when Ghana's young population is expanding.

“Growth is led by sectors with limited employment absorption relative to its growing young population entering the labour market in the next decade,” he said.

The concern is particularly significant for young Ghanaians entering the labour market, as economic expansion does not necessarily translate into enough opportunities for people seeking work.

The World Bank described the situation as a structural imbalance requiring urgent attention.

“A structural imbalance that also demands urgent attention,” Dr Taliercio O'Brien said.

The gap between growth and living standards

Economic growth is generally measured by the expansion of economic activity, but the World Bank's warning highlights the importance of how that growth is distributed and whether it creates sufficient opportunities for households.

The bank says Ghana's recent economic performance has not yet translated into broad-based improvements in living standards.

The widening regional disparities also suggest that the benefits of economic activity are not being experienced equally across the country.

For ordinary Ghanaians, the issue is therefore not simply whether the economy is growing, but whether that growth is producing jobs and improving household incomes and living conditions.

The World Bank's assessment comes as Ghana seeks to strengthen its economic recovery while addressing employment and living-standard challenges.

The warning puts job creation, poverty reduction and more geographically balanced growth at the centre of the country's economic challenge.

It also suggests that sustaining economic growth alone may not be enough to reduce poverty significantly unless the sectors driving that growth can generate more productive employment and wider economic opportunities.