World Bank Forecasts Sluggish Growth For Nigerian Economy In 2020

The world Bank Group (WBG) economic outlook for 2020 has predicted Nigeria’s economy would experience a “sluggishly” 2.1 % growth in 2020.

The WBG made this known in its: Global Economic Prospect released Wednesday in Washington DC.

Based on the report, economic activities in Nigeria for the year 2019 was “lackluster,” as it blamed both macroeconomic policy (rising inflation, OMO restriction, MPR) and the business environment for the down trend, adding that operating environment was not conducive to strong domestic demand.

The world bank decried that the growth in 2019 will remain unchanged at 2% considering the under performance of the agricultural sector due to the lingering threat of Boko Haram, the cases of kidnapping and farmers-herdsmen clashes especially in the Northern part of the country.

It further mentioned poor electricity supply, constrained manufacturing activity and offset by increased oil production as factors which slowed down growth in 2019.

Similarly, WBG stated that economic growth in Sub-Saharan Africa lowered from 2.6% to 2.4% in 2019, adding that 2020 growth in the sub-Saharan Africa is projected to 2.9% and strengthened to 3.2% in 2021-2022, which is notably weaker than other projection.

The outlook added that in the three largest economies in the region: Angola, Nigeria and South Africa, economic growth was slow in 2019.

Meanwhile, on the global scale, growth is expected to recover to 2.5% in 2020 an upward growth from 2.4%experienced in 2019.

It warned emerging markets and developing economies need to redesign its macroeconomic policy in other to build an economy with resistance to negative shocks and pursue reforms that would boost long term growth.

On the call by the WBG on the emerging and developing economies to redesign look into its economic policy, Omotola Abimbola, an analyst with Chapel Hill Denham Security Ltd, had told Bloomberg it is, “believed Central Bank of Nigeria (CBN) may be forced to review market structure in the second half of 2020 to address investors concern.”