Nigeria Coming Out Of Recession This Year- World Bank Report

The World Bank, in a new report says Nigeria’s economy would come out of recession this year, forecasting a slim 1% GDP growth for the country, slower than the 2.9% expected for Sub-Saharan Africa which continues to adjust to lower commodity prices, better than 2.7% forecast for the globe.
Just like Nigeria, growth in other oil exporters as well as South Africa, according to bank’s January 2017 Global Economic Prospects report, would expectedly be weak, while economies that are not natural-resource intensive remain robust.
Growth in South Africa would be slightly better than Nigeria’s at 1.1% this year, while Angola, another oil export on the continent, is projected to expand at a 1.2% pace.
Meanwhile, growth in advanced economies is expected to edge up to 1.8% this year, the report said, noting that “fiscal stimulus in major economies—particularly in the United States—could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects. Growth in emerging market and developing economies as a whole should pick up to 4.2% this year from 3.4% in the year just ended amid modestly rising commodity prices.”
That notwithstanding, the World Bank said the outlook is clouded by uncertainty about policy direction in major economies, noting that protracted period of uncertainty could prolong the slow growth in investment that is holding back low, middle, and high income countries.
Commenting on the report, the statement quoted World Bank Group President, Jim Yong Kim, as saying that “after years of disappointing global growth, we are encouraged to see stronger economic prospects on the horizon.
“Now is the time to take advantage of this momentum and increase investments in infrastructure and people. This is vital to accelerating the sustainable and inclusive economic growth required to end extreme poverty,” he added.
The report analyzes the worrisome recent weakening of investment growth in emerging market and developing economies, which account for one-third of global GDP and about three-quarters of the world’s population and the world’s poor. Investment growth fell to 3.4% in 2015 from 10% on average in 2010, and likely declined another half percentage point last year.
The statement noted that the expected slowing investment growth is partly a correction from high pre-crisis levels, just as it reflects obstacles to growth that emerging and developing economies have faced, including low oil prices (for oil exporters), slowing foreign direct investment (for commodity importers), and more broadly, private debt burdens and political risk.
For World Bank Chief Economist Paul Romer, “we can help governments offer the private sector more opportunities to invest with confidence that the new capital it produces can plug into the infrastructure of global connectivity.
“Without new streets, the private sector has no incentive to invest in the physical capital of new buildings. Without new work space connected to new living space, the billions of people who want to join the modern economy will lose the chance to invest in the human capital that comes from learning on the job.”

Sign In

Register

Reset Password

Please enter your username or email address, you will receive a link to create a new password via email.