Ghanaians relied on borrowing to survive in 2021 – Report
General news for Thursday, January 27, 2022
A recent report found that borrowing from friends and family was the most common coping strategy for surviving 2021.
According to the Ghana Statistical Service report on COVID-19 Households and Jobs Tracker Wave 3, “About eighty-seven percent (86.7%) of households used some sort of coping strategy to cope with the negative effects of COVID-19 since March. 2020”.
Among a multitude of coping mechanisms such as resorting to savings, reducing food consumption and helping friends and relatives, the ESG highlighted that “borrowing became coping strategies more frequent in 2021″.
Another breakdown indicated that 8.4% of respondents had borrowed from March 2020 to December 2020, while 7.9% had borrowed between January 2021 and July 2021.
Other more common coping strategies included reliance on savings, which was set at 43.0%, while a reduction in food consumption stood at 42.9%.
Respondents reported that most types of coping strategies were used more often in 2020 than in 2021, with the exception of borrowing from friends and family and using credit purchases.
Asked about changes in income levels, only 26.7% of respondents indicated that their total household income had remained the same compared to the pre-COVID-19 period (March 16, 2020).
“5.1% of respondents indicated that their total income had increased, while 68.2% indicated that their household income had decreased”.