The World Bank recently upgraded Nigeria’s economic growth forecast for 2021 to 1.8 percent due to various developments in the market, according to the media. The World Bank highlighted potential high oil prices, structural oil sector reforms and market-based flexible exchange rate management as the reasons for upgrades.
The World Bank forecast was a part of the Global Economic Prospects and the recent report titled, ‘Global Recovery Strong but Uneven as Many Developing Countries Struggle with the Pandemic’s Lasting Effects.’ The growth forecast by the World Bank has been raised from 1.1 percent in January to 1.8 percent. Along with Nigeria, the World Bank also upgraded its economic growth forecast for the Sub Saharan Africa region from 2.7 percent in January to 2.8 percent.
It said, “Growth is forecast to resume to 2.8 percent this year and firm to 3.3 percent in 2022, underpinned by stronger external demand, mainly from China and the US, higher commodity prices, and containment of Covid-19. Procurement and logistical challenges are expected to continue to hobble the pace of vaccination despite the provision of vaccines by COVAX.”
In the report, David Malpass, World Bank Group President, also said that while there are welcoming signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world.