World Bank Predicts Weaker Economic Outlook For Nigeria

World Bank
World Bank

 The World Bank’s January 2020 Global Economic Prospects report has revealed that uncertainty over the direction of the Federal Government’s policies has weakened Nigeria’s economic outlook,

The World Bank in the report projected that the Nigerian economy would grow by 2.1 per cent this year.

The predicted growth rate, which the World Bank also put at 2.1 per cent until 2022, is weaker than previous projections made by the Bretton Woods institution.

In the report which described the projected growth rate as ‘subdued’, the World Bank explained that the Federal Government’s macroeconomic framework did not inspire confidence.

The bank specifically noted that the macroeconomic framework was characterized by multiple exchange rates, foreign exchange restrictions and persistent high inflation.

It also raised concern raised about the country’s macroeconomic framework noting that the Central Bank of Nigeria was ‘targeting manifold objectives’.

Growing uncertainty over the direction of the policies of the Federal Government was expected to further weaken the country’s economic outlook, the bank said.

The Bank observed that “Growth in Nigeria is expected to remain subdued.

“Growth is projected to remain broadly unchanged, rising only to an average of 2.1 per cent in 2020-22.

“This is weaker than previous projections, reflecting softer external demand, lower oil prices, and a slower-than-previously-expected improvement in oil production in view of the lack of the much-needed reforms.”

“The macroeconomic framework – characterized by multiple exchange rates, foreign exchange restrictions, high persistent inflation, and a central bank targeting manifold objectives – does not provide a firm anchor for confidence, the World Bank insisted.