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According to a World Bank estimate, a staggering 850,000 Ghanaians fell into poverty in 2022 due to rising inflation rates.
According to the report, the severe economic crisis that hit the nation in 2022 and was marked by skyrocketing inflation rates had a terrible impact on food security and poverty.
It also revealed that between January and December, year-over-year inflation soared from 14% to an astounding 54%, marking the most significant level since the early 2000s.
According to the World Bank, this jump in inflation was especially noticeable in the rising costs of food, which surpassed those of non-food commodities. The poorest sectors of the population were impacted the hardest as a result, resulting in a sharp decline in the real purchasing power of Ghanaians.
Alarming simulation results showed that in 2022, the only reason that 850,000 Ghanaians will be living in poverty is because of the rising prices. These people and families experienced transient drops in income and consumption that became ingrained, which resulted in poverty that remained entrenched and, in some circumstances, even permanent. In terms of food security, the situation deteriorated, according to a World Bank assessment.
“Another disturbing disclosure was that 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.”
In order for Ghana to recover and guarantee its residents a more secure and prosperous future, the research advises the government to implement smart policies and concentrated efforts.
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