Nigerian economy to grow by 1.8% – W’Bank

Nigeria’s economy will grow at a modest rate of 1.8 per cent in 2021, the World Bank has projected.

The international financial institution made the projection in its ‘June Global Economic Prospects’ report released on Tuesday.

It said the country’s economy would edge up to 2.1 per cent in 2022, assuming there is higher oil prices, a gradual implementation of structural reforms in the oil sector and a market-based flexible exchange rate management.

“The expected pickup is also predicated on continued vaccinations in the second half of 2021 and a gradual relaxation of COVID-related restrictions that will allow activity to improve. Nonetheless, output in Nigeria is not expected to return to its 2019 level until end-2022,” it reported.

The World Bank Group President, David Malpass, noted that while there were signs of global recovery, the pandemic would continue to inflict poverty and inequality on people in developing countries around the world.

“As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability,” he said.

According to the report, lowering trade costs such as cumbersome logistics and border procedures could help bolster the recovery among emerging markets and developing economies by facilitating trade.

Meanwhile, the global economy is expected to grow at 5.6 per cent in 2021, amid a struggle to save emerging markets and developing economies from the impact of the coronavirus pandemic.

The expected growth is based largely on strong rebounds from a few major economies, the World Bank said.

According to the bank, the 5.6 per cent expected growth, the fastest post-recession pace in 80 years, is an upward review from the 4.1 per cent forecast in January.

In spite of the recovery, global output would be about two per cent below pre-pandemic projections by the end of the year, stressing that per capita income losses would not be unwound by 2022 for about two-thirds of emerging market and developing economies.

Among major economies, the United States of America’s growth is projected to reach 6.8 per cent.

“Among emerging markets and developing economies, China is anticipated to rebound to 8.5 per cent this year, reflecting the release of pent-up demand.

“Emerging market and developing economies as a group are forecast to expand by six per cent this year, supported by higher demand and elevated commodity prices,” the bank said.

It, however, said that the recovery in many countries was being held back by a resurgence of COVID-19 cases and lagging vaccination progress, as well as the withdrawal of policy support in some instances.

Excluding China, the rebound in this group of countries was anticipated to be a more modest 4.4 per cent, while the recovery among emerging market and developing economies was forecast to moderate to 4.7 per cent in 2022, it also said.

“Growth in low-income economies this year is anticipated to be the slowest in the past 20 years other than 2020, partly reflecting the very slow pace of vaccination.

“Low-income economies are forecast to expand by 2.9 per cent in 2021 before picking up to 4.7 per cent in 2022. The group’s output level in 2022 is projected to be 4.9 per cent lower than pre-pandemic projections,” it added.

Sub-Saharan Africa’s regional activity is expected to expand at a modest 2.8 per cent in 2021 and 3.3 per cent in 2022.

“Nonetheless, the recovery is envisioned to remain fragile, given the legacies of the pandemic and the slow pace of vaccinations in the region,” it said.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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