The World Bank Group has raised its 2021 Gross Domestic Product (GDP) projection for Nigeria to 2.4 per cent, higher than the 1. 8 per cent it had previously estimated for the country.
The bank also declared that Sub-Saharan Africa was set to emerge from the 2020 recession sparked by the COVID-19 pandemic with growth expected to expand by 3.3 per cent in 2021.
In its twice-yearly economic update, ‘Pulse,’ captioned, “Africa’s Pulse: Climate Change Adaptation and Economic Transformation in Sub-Saharan Africa,” the World Bank observed that current speeds of economic recovery in the region was varied, with the three largest economies–Angola, Nigeria, and South Africa, expected to grow by 0.4 per cent, 2.4 per cent and 4.6 per cent respectively.
It said apart from South Africa and Nigeria, the rest of Sub-Saharan was rebounding faster at a growth rate of 3.6 per cent in 2021, with non-resource-rich countries like Côte d’Ivoire and Kenya expected to recover strongly at 6.2 and 5.0 per cent, respectively, the report added.
The World Bank report observed that due to prudent monetary and fiscal policies, the region’s fiscal deficit, at 5.4 per cent of GDP in 2021, was expected to narrow to 4.5 per cent of GDP in 2022 and 3 per cent of GDP in 2023.
The report further pointed out that the rebound in the region was being fueled by elevated commodity prices, a relaxation of stringent pandemic measures, and recovery in global trade, but remains vulnerable given the low rates of vaccination on the continent, protracted economic damage, and a slow pace of recovery.
It stated that the growth for 2022 and 2023, would also remain just below four per cent, continuing to lag the recovery in advanced economies and emerging markets, and reflecting subdued investment in Sub-Saharan Africa.
Chief Economist for Africa at the World Bank, Albert Zeufack explained: “Fair and broad access to effective and safe COVID 19 vaccines is key to saving lives and strengthening Africa’s economic recovery.
“Faster vaccine deployment would accelerate the region’s growth to 5.1 per cent in 2022 and 5.4 per cent in 2023—as more containment measures are lifted, boosting consumption and investment.”
