2019: World Bank predicts 2.2% GDP growth for Nigeria

The World Bank has predicted that Nigeria’s Gross Domestic Growth, GDP, will expand by 2.2 percent in 2019.

The World Bank made the prediction in its annual Global Economic Prospects published on Wednesday.

The prediction slightly upgraded the country’s projected growth rate from 2.1 per cent in June 2018.
According to the World Bank, growth in sub-Saharan Africa would accelerate to 3.4 per cent in 2019, due to improved investment in large economies together with continued robust growth in non-resource intensive countries.

“Per capita growth is forecast to remain well below the long-term average in many countries, yielding little progress in poverty reduction.

“Growth in Nigeria is expected to rise to 2.2 per cent in 2019, assuming that oil production will recover and a slow improvement in private demand will constrain growth in the non-oil industrial sector.

“Angola is forecast to grow 2.9 per cent in 2019 as the oil sector recovers as new oil fields come on stream and as reforms bolster the business environment.

“South Africa is projected to accelerate modestly to a 1.3 per cent pace, amid constraints on domestic demand and limited government spending,” the bank said.

Read also: AfDB approves $14.12 for Nigeria’s membership of ATI

The World Bank report, while dwelling on the risk to the region’s growth, said escalated trade tensions between the United States and China could impact negatively on the region.

“Faster than expected normalisation of advanced economy monetary policy could result in sharp reductions in capital inflows, higher financing costs and abrupt exchange-rate depreciation.

“Increased reliance on foreign currency borrowing has heightened refinancing and interest rate risk in debtor countries,” the noted.

The report further stated that domestic risks remained elevated and that political uncertainty and a concurrent weakening of economic reforms could continue to weigh on the economic outlook in many countries.

“In countries like Mozambique, Nigeria, and South Africa holding elections in 2019, domestic political considerations could undermine the commitments needed to rein in fiscal deficits, especially where public debt levels are high and rising.

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