World Bank Changes Nigeria's Economic Projection For Next Three Years

World Bank Changes Nigeria's Economic Projection For Next Three Years

- With the rate Nigeria's economy is growing, it will rise beyond the former projections that World Bank made for this year and next two years

- The World Bank reviewed upward, its old projections, reflecting the current economic growth within the country

- Last year, Nigeria's economy had entered recession, but this year, the World Bank has projected 1.8%, and 2.1% next year

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Nigeria's projected economic growth has been reviewed by the World Bank, increasing the estimation of the gross domestic product for 2021 to 1.8%.

The Bretton Wood institution raised Nigeria's economic growth from 1.1% to 1.8% for this year, while stating that the GDP will further rise to 2.1% next year, and 2.4% in 2023.

That of Africa was also reviewed upward to 2.8% in 2021, and next year, sub-saharan economy is projected to reach 3.3%. The global economy was estimated to rise by 5.6%.

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The new projection factored in the COVID-19 pandemic and the aftermath, rising oil price, structural changes in the oil industry, and flexible exchange rate which will be based on the market.

World Bank made it known in its June 2021 Global Economic Prospects report titled: “Global Recovery Strong but Uneven as Many Developing Countries Struggle with the Pandemic’s Lasting Effects.”

World Bank Changes Nigeria's Economic Projection For Next Three Years
President Muhammadu Buhari. Photo: Olivier Douliery-Pool
Source: Getty Images

In the report, the David Malpass, World Bank Group President, said:

“While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,”

He added that:

“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.”

Meanwhile, Legit.ng had previously reported that the Nigerian National Petroleum Corporation (NNPC) is intensifying its effort to acquire stake in Dangote refinery.

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The government-owned oil company is planning to raise $2.5 billion loan from the African Export and Import Bank in order to acquire a 20% stake in the refinery.

This will make NNPC a minority stakeholder at the refiner owned by Africa's richest man, Aliko Dangote. The refinery is set to begin operation next year.

Source: Legit

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