The World Bank has forecast that
economic growth in Nigeria would edge up to at least 2.5 per cent in
2018, as the country benefits from improved commodity prices,
investments and trade.
According to the World Bank’s January
2018 Global Economic Prospect report launched on Tuesday in Washington
DC, Nigeria’s Gross Domestic Product (GDP) is expected to grow by 2.8
per cent in 2019 and 2020.
The News of Agency of Nigeria (NAN)
reports that the World Bank also forecast that global economic growth
will go up to 3.1 per cent in the year.
According to the bank, growth in
Sub-Saharan Africa is projected to continue to rise to 3.2 per cent in
2018 and to 3.5 per cent in 2019, on the back of firming commodity
prices and gradually strengthening domestic demand. However, the report
showed that growth would remain below pre-crisis averages, partly
reflecting a struggle in larger economies to boost private investment.
“South Africa is forecast to tick up to
1.1 per cent growth in 2018 from 0.8 per cent in 2017. The recovery is
expected to solidify, as improving business sentiment supports a modest
rise in investment.
“However, policy uncertainty was likely to remain and could slow needed structural reforms.
“Nigeria is anticipated to accelerate to
a 2.5 per cent rate this year from one per cent growth in the year just
ended. An upward revision to Nigeria’s forecast is based on expectation
that oil production will continue to recover and that reforms will lift
non-oil sector growth.
“Growth in Angola is expected to
increase to 1.6 per cent in 2018, as a successful political transition
improves the possibility of reforms that ameliorate the business
environment,” it stated.
According to the report, Côte d’Ivoire
is forecast to expand by 7.2 per cent in 2018, Senegal by 6.9 per cent;
Ethiopia by 8.2 per cent, Tanzania by 6.8 per cent, and Kenya by 5.5 per
cent as inflation eases.
The World Bank said that the regional outlook for sub-Saharan Africa was subject to external and domestic risks.
It showed that any unexpected activity in the United States and Euro Zone could have a negative impact on the region.
Also, an abrupt slowdown in China could generate adverse spillovers to the region through lower-than-expected commodity prices.
“On the domestic front, excessive
external borrowing without forward-looking budget management could
worsen debt dynamics and hurt growth in many countries.
“A steeper-than-anticipated tightening
of global financing conditions could also lead to a reversal in capital
flows to the region. Protracted political and policy uncertainty could
further hurt confidence and deter investment in some countries.
“Rising government debt levels highlight
the importance of fiscal adjustment to contain fiscal deficits and
maintain financial stability.
“Structural policies including
education, health, labour market, governance, and business climate
reforms could help bolster potential growth,’’ it stated.
The World Bank advised policy makers
around the world to focus on human investments to increase their
countries’ productivity, and move closer to the goals of ending extreme
poverty and boosting shared prosperity.
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