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World Bank revises Nigeria’s 2021 growth projection to 1.8%

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The World Bank on Tuesday raised Nigeria’s economic growth projection for 2021 to 1.8 percent, up from the previous 1.1 percent projection.

The Bretton Wood institution also expects Nigeria economy to expand further to 2.1 percent in 2022 and 2.4 percent in 2024.

The bank stated this 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.”

However, the report warned that output in Nigeria would rebound to 2019 levels until the end of 2022.

In its January 2021 report, the World Bank had projected a 1.1 percent growth rate for the country in 2021 and 1.8 percent in 2022 after the COVID-19-induced recession of 2020.

The report stressed that the updated prediction was based on the expectation that oil prices would continue to climb, structural changes in the oil industry would be implemented gradually, and a market-based flexible exchange rate management.

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It read: “The expected pickup is also predicated on continued vaccinations in the second half of this year and a gradual relaxation of COVID-related restrictions that will allow activity to improve.”

Globally, World Bank projected a 5.6 percent growth in 2021 — fastest post-recession pace in 80 years — mainly on strong rebounds from a few major economies.

In Sub-Saharan Africa, economic activity is projected to rise by 2.8 percent in 2021 and 3.3 percent in 2022 as countries continue to struggle with the COVID-19 pandemic and its aftermath.

“While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,” David Malpass, World Bank Group President, said.

“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.”

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