Business News of 2014-06-03

Oil production is raising cost of living

A study conducted by the Friedrich Ebert-Stiftung Foundation to assess the effects of oil production in Ghana has recorded an increase in the cost of livelihood over the last three years.

Results of the survey revealed that since the start of oil production in 2009, there has been a rapid increase in costs of living in most parts of Ghana, however, slower in the North than in the rest of the country.

Out of the 3000 respondents sampled in all 10 regions of the country, 79.6 percent who answered questions on “Changes in cost of Living” believe that the cost of living has soared in the last few years. Only 14.7 percent of the respondents stated that the living costs did not change, while 5.7 percent believe that the costs even decreased.

The answers according to the regions vary compared to the national average result, the report said. “The results from the regions with the highest population in Ghana (Greater Accra 80.6 %, Ashanti Region 83.2 %) are above the nationwide average.” This can be explained by the economic importance of these regions, the study further analyzed.

Furthermore, “the living costs in the Northern Regions have increased as well, but compared to the rest of Ghana it is evident that the results from Upper East (67.8 %) and Upper West (71.4 %) are below the national average.”

This, the report said, could be an indicator that despite the increasing cost of living in some regions, they are increasing slower in the North than in the rest of the country.

For respondents with families, the report also noted that “an overwhelmingly 87.9 percent of respondents who have no children are complaining about higher costs of living. They even surpassed those with children.” The hypothesis was that the percentages of the respondents would increase proportionally to the increasing number of children.

Also, 82.5 percent of the respondents working in the public sector stated that the cost of living has increased.

The study titled, “Oil Production and its Impact on the Livelihood of Communities in Ghana” was conducted by Friedrich Ebert Stiftung (Ghana Office), a political foundation that seeks to promote security, social democracy and economic development in connection with You-net.

Source: Inform Ghana
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