By Adedapo Adesanya
Nigeria’s economy has been forecast to grow by 1.1 per cent in 2021, according to the latest projection by the World Bank.
This was contained in a statement issued in Washington D.C. on Tuesday at the presentation of the January 2021 Global Economic Prospects.
The global lender said the world economy is expected to grow by 4 per cent in 2021, assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year.
The Bretton Wood institution noted the oil-dependent Nigerian economy faced low oil prices, Organisation of Petroleum Exporting Countries (OPEC) quotas, falling public investment due to weak government revenues, constrained private investment due to firm failures and subdued foreign investor confidence.
The bank also said that growth in Sub-Saharan Africa was forecast to rebound moderately to 2.7 per cent in 2021.
Speaking of the region, the multilateral agency said that while the recovery in private consumption and investment was forecast to be slower than previously envisioned, export growth was expected to accelerate gradually, in line with the rebound in activity among major trading partners.
“Expectations of a sluggish recovery in Sub-Saharan Africa reflect persistent COVID-19 outbreaks in several economies that have inhibited the resumption of economic activity.
“The pandemic is projected to cause per capita incomes to decline by 0.2 per cent this year, setting Sustainable Development Goals (SDGs) further out of reach in many countries in the region.
“This reversal is expected to push tens of millions more people into extreme poverty over last year and this year,” it stated.
Globally, the lender noted that the COVID-19 pandemic has caused “a heavy toll of deaths and illness, plunged millions into poverty, and may depress economic activity and incomes for a prolonged period” and called on policymakers to move decisively.
It noted that immediate policy priorities should now focus on controlling the spread of the coronavirus and ensuring rapid and widespread vaccine deployment.
“To support economic recovery, authorities also need to facilitate a re-investment cycle aimed at sustainable growth that is less dependent on government debt,” the bank advised.
Speaking about this, the World Bank Group President, Mr David Malpass, said, “While the global economy appears to have entered a subdued recovery, policymakers face formidable challenges—in public health, debt management, budget policies, central banking and structural reforms—as they try to ensure that this still-fragile global recovery gains traction and sets a foundation for robust growth.
“To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labour and product market flexibility, and strengthen transparency and governance.”
The COVID-19 pandemic is expected to leave long-lasting adverse effects on global activity, the World Bank warns, with a likely slowdown in global growth stretching through the next decade.
It warned that the global economy could be heading for a decade of “growth disappointments unless policymakers put in place comprehensive reforms to improve the fundamental drivers of equitable and sustainable economic growth.”
Dipo Olowookere