The Country Director of the World Bank, Pierre Laporte, has revealed the adverse effects of soaring inflation in 2022 on the overall living standards, particularly among vulnerable segments of the population.

He noted that the prevalence of extreme poverty among Ghanaians had risen since the previous year, with over a quarter of the population currently living on GH¢24 daily, equivalent to less than two dollars.

The recent surge in inflation in Ghana has significantly eroded the purchasing power of affected households, primarily due to the fact that their incomes have not kept pace with the rising inflation.

“It is expected that the current economic woes the country has endured may have pushed many more Ghanaians into poverty, and food insecurity worsened by the last quarter of 2022 when inflation was at its peak,” Mr Laporte said on October 18 at a ceremony to mark End Poverty Day at the World Bank Office in Accra.

The programme was under the theme: “Delivering growth to people through better jobs in Ghana”.

The way forward

Regarding how the government can achieve a turnaround in the current situation, he advocated for the implementation of structural reforms to strengthen initiatives aimed at long-term economic growth and consolidation.

“Bolstering long-term growth prospects will require policies that support investment and human capital development, as well as buttressing resilience and crisis preparedness, especially in agriculture and food systems,” he said.

“Well targeted investments,” he submitted could create better jobs, reduce income inequality and boost productivity.

“Jobs and employment are the surest way to reduce poverty and inequality. Impact is further multiplied in communities and across generations if we purposefully empower women and girls, and young people,” he stressed.

The World Bank, he said, was evolving its vision and mission in response to a succession of global crises that had upended development progress.

“The World Bank is transforming through the urgency of a new playbook which focuses on enhancing and modernising our financing capacity, delivery model and efficiency of delivery, among others, to drive inclusive development that does not come at the cost of the vulnerable on the planet, leading to better quality of life and jobs for people,” he said.