Chartered Economist and partner at C-KADD Global consultancy firm, Emmanuel Amoah Darkwah, has alluded that the high cost of living is not only felt in Ghana but has become a global issue.
In his view, it is understandable to hear Ghanaians wailing about tough times in the country because income levels have failed to be increased as against the high costs of goods and services.
Discussing the ‘Pull and Push factors on the General Cost of Living in Ghana’ with Samuel Eshun on etv Ghana’s ‘Fact Sheet’ show, Mr Amoah Darkwah, explained that the purchasing power has been affected due to the reduction in disposable income.
“Times are tough because prices of goods and services have gone up and at the same time income levels and salaries have not increased. People have reduced disposable income and what it means is that, people are not having as much as they will spend and that is basically causing people to say times are tough. What then are the major things we spend on, i.e transportation, electricity, water and all the other social amenities you can talk about. There’s been an increase in all these commodities that we need and various things we spend on which is leading to the reduction in disposal income. This has also led to a reduction in purchasing power because if they’re not having the money required, it means that their purchasing power will also reduce and it will affect their living standards and cost of living as well,” he noted.
He however reiterated that this has become a global concern, highlighting the ongoing Ukraine-Russian war and the current lockdown in China as factors contributing to the increased prices in the global economy.
He said, “This is also a global issue and the number one reason people doubt is the Russia-Ukraine war. We have to understand the impact of this war on global economy and so I must say that it’s not peculiar to only Ghana, it is also happening in other countries. You can talk about the USA, UK, you go to Asia and all the other continents, we have seen a marginal increase in prices of goods and services. That is why banks all over the world are responding. I mean Central banks are responding with an increase in their monetary policy rate. FED for instance in the USA has increased its rate by 0.5%. The Bank of England has done same by increasing its rate to 0.25%. This is a response to tackling the high inflation that is happening in all these countries. Not forgetting China is also facing some lockdowns. They have the zero lock down policy and China is also a global industry. So we are seeing some shortfall in terms of the input that we demand and their production level globally.”
He further suggested that solutions to addressing these economic concerns should tackle the internal factors and the global stage rather than relying solely on external aids.
