Poverty Gains Could Be Reversed despite Sharp Decline in Numbers – Analyst warns
By: Solomon Nartey Tetteh
Economic Analyst Emmanuel Boateng has warned that Ghana’s recent gains in poverty reduction could be reversed if structural challenges such as housing pressures, school dropouts, and weak labour market access for poor households are not addressed.
He made the remarks on Business Breakfast on Zed, following the release of the latest Multidimensional Poverty Report by the Ghana Statistical Service.
Mr. Boateng explained that while the country has recorded a significant drop in poverty levels, the sustainability of that progress depends on protecting vulnerable households from emerging economic pressures.
“The poverty reduction we have seen can be reversed if housing pressures intensify, if children continue to leave school, and if the labour market does not work for poor households,” he cautioned.
Providing context, he noted that the Multidimensional Poverty Index, or MPI, measures simultaneous deprivation across key areas including cost of living, health, education, employment and living conditions. He described it as a more demanding and comprehensive standard than the traditional monetary poverty line.
“When the MPI falls, it means households are escaping multiple deprivations at once. That is a more durable form of poverty reduction than temporary income transfers that only move someone slightly above a poverty threshold,” he explained.
According to the report, the number of poor people declined from 8.2 million in the fourth quarter of 2024 to 7.2 million by the third quarter of 2025, a reduction of about one million people within a year.
Mr. Boateng described the drop as “structurally significant,” saying it reflects the impact of macroeconomic stabilisation and disinflation.
“It suggests that macroeconomic stabilisation and the disinflation we are talking about are becoming real and translating into real improvements in household welfare,” he said.
However, he expressed concern about the intensity of poverty among those who remain poor. The data shows that the intensity rate stands at 42 per cent, meaning the average multidimensionally poor person is deprived in roughly 42 per cent of the weighted indicators measured under the MPI.
He noted that the intensity of poverty has not declined as quickly as the overall poverty rate.
“That tells us that while fewer people are classified as poor, those who remain poor are facing compounding deprivation,” he stressed.
Mr. Boateng stressed that policymakers must focus not only on reducing the number of people living in poverty, but also on easing the depth and severity of deprivation among the most vulnerable groups to ensure long-term and inclusive progress.
