Ghana’s improving macroeconomic indicators are yet to fully translate into better household welfare, with rising food insecurity exposing a gap between economic recovery and the living conditions of millions of people.
The Institute for Liberty and Policy Innovation (ILAPI) says the 2027 Budget must address this gap by shifting greater attention towards income generation, productive employment and the removal of economic barriers that keep households in poverty.
The institute argues that declining inflation, stronger foreign reserves and economic growth should not be the sole measures of economic progress, particularly when a significant proportion of the population continues to struggle with food access and limited economic opportunities.
Data from the Ghana Statistical Service’s Ghana in Numbers 2025 show that multidimensional poverty declined from 31.2% in 2022 to 23.0% during the first three quarters of 2025.
However, food insecurity increased from 37.7% in 2024 to 39.8% during the first three quarters of 2025, affecting approximately 13 million people.
The figures point to a welfare challenge that could undermine the benefits of macroeconomic improvements if households do not experience corresponding gains in purchasing power, employment and access to essential goods.
The disparity is also evident in the distribution of poverty between rural and urban communities. Rural multidimensional poverty stood at 31.9% in the third quarter of 2025, more than twice the urban rate of 14.2%.
For the government, the figures raise questions about how effectively economic growth is reaching communities outside major commercial centres, particularly where access to productive employment, markets and business financing remains limited.
Executive Director of ILAPI, Peter Bismark Kwofie, said the 2027 Budget should establish measurable poverty-reduction targets and direct public investment towards sectors with stronger potential to create sustainable jobs.
Agriculture, agro-processing and manufacturing are among the sectors he identified as important to expanding employment and improving household incomes.
These industries have the potential to connect rural production to larger commercial markets, create opportunities for small businesses and increase the value generated from local resources.
However, their contribution to poverty reduction will depend partly on whether businesses can access affordable financing and operate without excessive establishment and operating costs.
ILAPI is therefore calling for measures to reduce the cost of doing business, expand access to affordable private-sector credit and direct poverty-reduction expenditure towards communities experiencing the highest levels of deprivation.
The institute also wants poverty reduction to move beyond direct financial assistance and resource distribution towards addressing institutional barriers that prevent individuals from building and retaining wealth.
This includes stronger protection of household assets, improved inheritance rights and wider access to economic opportunities.
The distinction is important for long-term poverty reduction because household financial security depends not only on immediate income but also on the ability to accumulate assets, operate businesses and transfer wealth across generations.
With Finance Minister Dr Cassiel Ato Forson expected to present the 2027 Budget Statement and Economic Policy on November 12, 2026, the competing demands on public expenditure will include the need to sustain macroeconomic stability while improving the productive capacity of households and businesses.
ILAPI believes the effectiveness of the budget should ultimately be measured by whether economic recovery creates decent jobs, raises incomes and reduces the number of people experiencing deprivation.
The broader challenge for Ghana’s economic policy is to ensure that improvements in national economic indicators are reflected in the financial security and productive opportunities available to ordinary households.
