World Bank Lowers Nigeria’s Growth Rate for 2019

• World Bank Lowers Nigeria’s Growth Rate for 2019

The World Bank has lowered Nigeria’s projected growth rate for the year 2019.

In the 2019 Global Economic Prospects report titled: ‘Heightened Tensions, Subdued Investment’, the bank predicted that Africa’s largest economy will grow at 2.1 percent in 2019, lower than the 2.2 percent previously projected.

The multilateral institution said growth rates in low-income nations were expected to rise to 6 percent in 2020, slightly better than the 5.4 percent achieved in 2019. However, it stated ‘is still not enough to substantially reduce poverty.’

It added: “While a number of low-income countries progressed to middle income status between 2000 and 2018, the remaining low-income countries face steeper challenges to achieving similar progress. Many are poorer than the countries that made the leap to higher income levels and are fragile, disadvantaged by geography and heavily reliant on agriculture.”

Nigeria economy is expected to grow at a rate of 2.2 percent in 2020 and 2.4 percent in 2021, according to the bank.

“In 2020, growth in South Africa is anticipated to rise to 1.5 per cent; growth in Angola is anticipated to pick up to 2.9 per cent; and growth in Nigeria is anticipated to edge up to 2.2 per cent in 2020,” the World Bank predicted.

“Regional growth is expected to accelerate to 3.3 per cent in 2020, assuming that investor sentiment toward some of the large economies of the region improves, that oil production will recover in large exporters, and that robust growth in non-resource-intensive economies will be underpinned by continued strong agricultural production and sustained public investment. “While per capita GDP is expected to rise in the region, it will nevertheless be insufficient to significantly reduce poverty,” it added.

Similarly, the global economy is expected to grow at 2.6 percent in 2019 before slightly ticking up to 2.7 percent in 2020. While growth in emerging economies is generally expected to stabilise in 2020.

“In 2020, growth in South Africa is anticipated to rise to 1.5 per cent; growth in Angola is anticipated to pick up to 2.9 per cent; and growth in Nigeria is anticipated to edge up to 2.2 per cent in 2020,” the World Bank predicted.

“Regional growth is expected to accelerate to 3.3 per cent in 2020, assuming that investor sentiment toward some of the large economies of the region improves, that oil production will recover in large exporters, and that robust growth in non-resource-intensive economies will be underpinned by continued strong agricultural production and sustained public investment. “While per capita GDP is expected to rise in the region, it will nevertheless be insufficient to significantly reduce poverty,” it added.

Nigeria’s economy grew by 2.01 percent in the first quarter of the year, slower than the 2.39 percent recorded in the final quarter of 2018.