The World Bank has predicted that Nigeria will exit recession this year. The World Bank revealed this in its January 2017 Global Economic Prospects report released yesterday.
According to the report, Nigeria’s economy will grow at one per cent as it also said the global economy will accelerate moderately to 2.7 per cent in 2017.
It added that the 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.
The World Bank, however, noted that the global economy’s outlook is clouded by uncertainty about policy direction in major economies, adding that a protracted period of uncertainty could prolong the slow growth in investment that is holding back low, middle, and high-income countries.
It further stated that emerging market and developing economy commodity exporters are expected to expand by 2.3 percent in 2017 after an almost negligible 0.3 percent pace in 2016, as commodity prices gradually recover and as Russia and Brazil resume growing after recessions.
In contrast, the bank stated that commodity importing emerging market and developing economies should grow at 5.6 percent this year, unchanged from 2016. China is also projected to continue an orderly growth slowdown to a 6.5 percent rate.
Nigeria Bureau of Statistics, NBS, officially declared Nigeria’s recession in the second quarter of 2016. According to the NBS, the country’s Gross Domestic Product (GDP) contracted by 2.06% to record its lowest growth rate in three decades, meaning the GDP shrunk by 0.36%
The Minister of Finance, Mrs. Kemi Adeosun, and Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, had both said that the country will return to growth this year.