The World Bank has predicted that Nigeria will get out of
recession and grow its Gross Domestic Product by one per cent this year after
plunging into its worst recession in over two decades.
The bank said in a statement on Wednesday, “Sub-Saharan
African growth is expected to pick up modestly to 2.9 per cent in 2017 as the
region continues
to adjust to lower commodity prices.
“Growth in South Africa and oil exporters is expected to be
weaker, while growth in economies that are not natural-resource intensive
should remain robust.
“Growth in South Africa is expected to edge up to a 1.1 per
cent pace this year. Nigeria is forecast to rebound from recession and grow at
a 1 per cent pace. Angola is projected to expand at a 1.2 per cent pace.”
The World Bank’s January 2017 Global Economic Prospects
report also projected that growth in the advanced economies would edge up to
1.8 per cent in the current year.
It stated 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 per cent this year from 3.4 per cent in the year
just ended amid modestly rising commodity prices, the bank stated.
Emerging market and developing economy commodity exporters
are expected to expand by 2.3 per cent in 2017 after an almost negligible 0.3
per cent pace in 2016 as commodity prices gradually recover and as Russia and
Brazil resume growing after recessions.
It, however, added that the outlook was clouded by
uncertainty about policy direction in major economies.
Commenting on the report, the President, World Bank Group,
Jim Yong Kim, stated, “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.”
The report noted the worrisome recent weakening of
investment growth in the emerging markets and developing economies, which
account for one-third of the global GDP and about three quarter of the world’s
population and the poor.
The World Bank’s Chief Economist, Paul Romer, said “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.”
Credit: Punch
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