After plunging into its worst recession in over two decades, the World Bank projects that Nigeria will get out of recession, and grow its gross domestic product (GDP) by one per cent this year.
According to reports, the global financial institution also said the global economy will accelerate moderately to 2.7 per cent this year.
“Sub-Saharan African growth is expected to pick up modestly to 2.9 per cent in 2017 as the region continues to adjust to lower commodity prices.
“Growth in South Africa and oil exporters is expected to be weaker, while growth in economies that are not natural-resource intensive should remain robust.
“Growth in South Africa is expected to edge up to a 1.1 per cent pace this year. Nigeria is forecast to rebound from recession and grow at a 1 percent pace. Angola is projected to expand at a 1.2 per cent pace,” the global lender said in a statement.
Fiscal stimulus in major economies—particularly in the United States—could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects.
Growth in emerging market and developing economies as a whole should pick up to 4.2 per cent this year from 3.4 per cent in the year just ended amid modestly rising commodity prices.
Nevertheless, the outlook is clouded by uncertainty about policy direction in major economies.
“After years of disappointing global growth, we are encouraged to see stronger economic prospects on the horizon,” Jim Yong Kim, World Bank Group president said.
“Now is the time to take advantage of this momentum and increase investments in infrastructure and people. This is vital to accelerating the sustainable and inclusive economic growth required to end extreme poverty.”
The report analyses the worrisome recent weakening of investment growth in emerging market and developing economies, which account for one-third of global GDP and about three-quarters of the world’s population and the world’s poor.
Investment growth fell to 3.4 per cent in 2015 from 10 per cent on average and likely declined another half percentage point last year.