Nigeria to Grow by 2.5% in 2018 -World Bank

• Nigeria to Grow by 2.5% in 2018 -World Bank

The World Bank forecast Nigeria’s economy to expand at 2.5 percent in 2018, citing improved commodity prices, trade and investment amid growing economic activity.

In the January 2018 Global Economic Prospect report released by the bank on Tuesday in Washington, DC, Nigeria’s economy is expected to expand by 2.8 percent in 2019 and 2020. While global economy was projected to expand at 3.1 percent in 2018.

According to the report, Sub-Saharan Africa will continue to grow at 3.2 percent in 2018 and 3.5 percent in 2019. Also, on the back of better commodity prices and rising domestic demand. However, growth is expected to remain below pre-crisis level, partly due to weak investment in larger economies.

“South Africa is forecast to tick up to 1.1 percent growth in 2018 from 0.8 percent 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 percent rate this year from one percent 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 percent in 2018, as a successful political transition improves the possibility of reforms that ameliorate the business environment,” it stated.

While Côte d’Ivoire is expected to grow at 7.2 percent in 2018, Senegal by 6.9 percent; Ethiopia by 8.2 percent, Tanzania by 6.8 percent, and Kenya by 5.5 percent as inflation eases.

The bank, however, said economic growth in the region could be impacted by external and local risks as growth in the region remains fragile.