The World Bank, in its June Global Economic Prospects, has marginally marked down Nigeria’s output growth for this year to 2.8 per cent on account of the slower speed seen in the first quarter.
The economy is expected to see faster growth of three per cent and 3.1 per cent in 2024 and 2025 respectively. June 2.8 per cent projection is 0.1 percentage point lower than the earlier estimate and 0.3 per cent lower than the 3.1 per cent real growth expansion recorded last year.
The Bank said the country’s growth is in 2023 to 2024 is far slower than what is needed to make significant inroads into mitigating extreme poverty.
In the first quarter, the gross domestic product (GDP) experienced a squeeze on account of cash scarcity and finished at 2.3 per cent growth rate.
On average, sub-Saharan Africa (SSA) is projected to grow at 3.2 per cent in the year. The forecast is over one percentage point ahead of the global average (2.1 per cent). The report noted that financing needs are projected to remain elevated, due to higher borrowing costs, lower oil production and prices and persistent fiscal and external pressures amid weak domestic revenue mobilisation.
