The World Bank has predicted a 5.6% expansion of the global economy in 2021 while also expressing hope in a 1.8% percent growth for Nigeria’s economy in the year.
This, according to experts’ view, will rank the fastest post-recession global growth in 80 years due to economic rebounds from developed and middle-income economies.
The global apex bank made this public in its June Global Economic Prospects for 2021 report on Tuesday, adding that many emerging markets and developing economies continue to struggle with the COVID-19 pandemic and its aftermath.
The World Bank in the statement said: “Despite the recovery, global output will be about 2% below pre-pandemic projections by the end of this year. Per capita income losses will not be unwound by 2022 for about two-thirds of emerging market and developing economies.
Among low-income economies, where vaccination has lagged, the effects of the pandemic have reversed poverty reduction gains and aggravated insecurity and other long-standing challenges,” the World Bank said.
In his remarks, World Bank Group President, David Malpass, acknowledged that despite welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world.
“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” he said.
The World Bank forecasts that emerging markets and developing economies will expand at 6% this year, supported by higher demand and elevated commodity prices. It added that the recovery in many countries is being held back by a resurgence of COVID-19 cases and lagging vaccination progress, as well as the withdrawal of policy support in some instances.
Growth in low-income economies this year is anticipated to be the slowest in the past 20 years other than 2020, partly reflecting the very slow pace of vaccination.
Low-income economies are forecast to expand by 2.9% in 2021 before picking up to 4.7% in 2022.
The World Bank forecasts Nigeria’s economy to grow by 1.8% in 2021 and 2.1% in 2022, as economic activities in Sub Saharan Africa is on course to rise by 2.8% in 2021 and 3.3% in 2022.
Observers say the predicted percentage growth in Nigeria’s economy may experience a downward slide if the insecurity situation in the country, which is affecting free movement of goods and services, is not nipped in the bud.
