Ghana’s Economy Is Stabilising, But Household Budgets Tell a More Cautious Story

Macroeconomic Stability Meets Household Restraint

Ghana’s macroeconomic indicators are showing signs of recovery. Inflation has slowed, the cedi has stabilised, and financial conditions are no longer as volatile as they were at the height of the crisis. Yet for many households, the recovery remains largely theoretical.

New data from KPMG’s 2025 West Africa Banking Industry Customer Experience Survey suggest that Ghanaian families are still budgeting defensively, prioritising essential spending and holding back on discretionary consumption.

The survey paints a picture of an economy where confidence is returning at the policy level but caution still dominates at the household level.

Food Costs Continue to Dominate Household Budgets

Food remains the single largest household expense, accounting for 61% of spending, according to the survey. This dominance reflects not indulgence, but necessity.

While food inflation has eased from previous peaks, prices remain elevated relative to incomes. For most families, food spending still requires careful planning, reduced portions and substitutions at the market. Any relief from headline inflation figures has yet to meaningfully expand household purchasing power.

The persistence of high food spending suggests that cost-of-living pressures remain deeply embedded, even as macroeconomic indicators improve.

Utilities Absorb a Growing Share of Income

Utilities rank second, with 47% of households identifying them as a major expense. Electricity, water and telecommunications costs remain largely non-negotiable, making them a constant strain on monthly budgets.

For households operating with little financial slack, even modest increases in tariffs or data costs can disrupt spending plans. The survey indicates that families often respond by cutting back elsewhere rather than falling behind on essential services.

Transport Costs Ease Slightly, But Remain a Burden

Transportation has slipped from second to third place in household spending priorities, reflecting some easing in fuel prices and commuting costs. However, transport remains a significant expense for workers, traders and students.

Whether through trotro fares, fuel purchases or ride-hailing services, mobility continues to absorb a meaningful share of income. The decline in ranking signals relative relief, not affordability.

Why Discretionary Spending Remains Muted

Despite improving economic conditions, households are not yet loosening their purse strings. Spending on entertainment, travel and non-essential items remains subdued, as families prioritise stability over consumption.

This restraint reflects lingering uncertainty. Many households appear to be managing risk, aware that economic gains can reverse quickly if inflation resurges or incomes stagnate.

What the Data Say About Ghana’s Recovery

KPMG’s findings underline a critical reality: macroeconomic recovery does not automatically translate into household comfort.

When food, utilities and transport dominate spending, it signals that families are still focused on meeting basic needs rather than improving living standards. Until incomes rise more decisively and essential costs fall further, Ghana’s recovery will feel stronger in economic reports than in everyday life.

For now, households are not celebrating the turnaround. They are steadying themselves.

— Accra Street Journal

Last Updated on January 30, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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