World Bank forecasts 5.6% global economic growth
The World Bank has projected a 1.8 per cent growth in Gross Domestic Product (GDP) for Nigeria in 2021 an increase from 1.1 per cent estimated earlier.
World Bank stated this in its June Global Economic Prospects for 2021 report released on Tuesday.
The financial institution stated this in its June Global Economic Prospects for 2021 report released on Tuesday. It also forecasted the GDP to grow to 2.1 percent in 2022 from 1.8 per cent predicted in January. Economic activities in Sub-Saharan Africa are on course to rise by 2.8 per cent in 2021 and 3.3 per cent in 2022.
“Growth in Nigeria is expected to resume at 1.8 per cent in 2021 and edge up to 2.1 per cent next year, assuming higher oil prices, structural oil sector reforms, and market-based flexible exchange rate management.” It said.
The Washington-based institution has said the global economy is expected to expand by 5.6 percent in 2021 although many emerging markets and developing economies continue to struggle with the COVID-19 pandemic and its aftermath.
It noted that this would be the fastest post-recession global growth in 80 years due to economic rebounds from developed and middle-income economies.
World Bank said “Despite the recovery, global output will be about 2 per cent below pre-pandemic projections by the end of this year. Per capita income losses will not be unwound by 2022 for about two-thirds of emerging market and developing economies. Among low-income economies, where vaccination has lagged, the effects of the pandemic have reversed poverty reduction gains and aggravated insecurity and other long-standing challenges.”
World Bank Group President, David Malpass, acknowledged that despite welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world. “Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries. 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.
The World Bank forecasts that emerging market and developing economies will expand at 6 per cent this year, supported by higher demand and elevated commodity prices. They added that the recovery in many countries is 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.
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.