The
World Bank has declared that despite weaker than expected global growth
and stable or declining commodity prices, African economies, including
Nigeria’s, have continued to expand at a moderately rapid pace, with
regional gross domestic product (GDP) projected to strengthen to 5.2 per
cent yearly between 2015 and 2016 from 4.6 per cent in 2014.
According to the bank’s ‘New Africa’s Pulse’—a twice yearly analysis
of the issues shaping Africa’s economic prospects - significant
investment in infrastructure, increased agricultural production and
expanding services in African retail , telecoms, transportation, and
finance, are expected to continue to boost growth in the region.
This economic reading also agrees with the verdict of the
International Monetary Fund (IMF) which declared that despit pite the
grave security challenges in Nigeria, the economy of the nation remains
resilient. The IMF gave this verdict in its latest World Economic
Outlook (WEO) as at October 2014 titled: “Legacies, Clouds,
Uncertainties,” released tuesday.
The IMF also stated that
recent revisions to national accounts data by Nigeria shows that the
economy is more diversified than previously thought.
The IMF also acknowledged the accretion of Nigeria’s external reserves.
The pick-up in growth, the World Bank said, is expected to occur in a
context of lower commodity prices and lower foreign direct investment as
a result of subdued global economic conditions.
“Overall,
Africa is forecast to remain one of the world’s three fastest growing
regions and to maintain its impressive 20 years of continuous
expansion,” said the World Bank’s Chief Economist for Africa, Francisco
Ferreira.
He noted that downside risks that require enhanced
preparedness include fiscal deficits in a number of countries; economic
fallouts from the activities of terrorist groups such as Boko Haram and
Al Shabaab, and most urgently, the onslaught of the Ebola epidemic in
West Africa.
A world Bank study of the likely economic impact
of Ebola, released last month, suggested that if the virus continues to
spread in the three worst affected countries—Sierra Leone, Liberia, and
Guinea, its economic impact could grow eight-fold, dealing a potentially
catastrophic blow to the already fragile nations.
Credit: Ndubuisi Francis/Obinna Chima/ThisDay
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