Ghana recorded a modest but meaningful decline in extreme poverty in 2024, according to the latest country report released by the International Monetary Fund (IMF) this month.
The share of the population living in extreme poverty, defined as surviving on less than $2.15 per day, decreased from 26.4% in 2023 to 25.9% in 2024, according to the report.
The IMF attributes the decline primarily to stronger-than-expected economic growth in 2024, particularly in the services sector, which remains a key driver of Ghana’s economy. Growth in agriculture, though more subdued, also contributed to poverty reduction, providing rural households with improved income opportunities.
In addition to economic performance, the report highlights that the government’s sustained investment in social protection programmes as a critical factor in cushioning vulnerable populations. Four flagship initiatives, the Livelihood Empowerment Against Poverty (LEAP), the Ghana School Feeding Program (GSFP), the Capitation Grant, and the National Health Insurance Scheme (NHIS), have seen expanded coverage and increased budgetary support under the IMF-supported program.
The report underscores that while the poverty decline is a step in the right direction, the pace of reduction remains gradual. Analysts note that sustained poverty alleviation will require not just economic growth, but inclusive policies that expand access to quality education, healthcare, and job opportunities, particularly in rural and underserved communities.
The IMF also stressed the importance of protecting social spending amid fiscal consolidation, warning that any significant cuts to these programs could reverse the recent gains in poverty reduction.
By Ekow Quandzie