The World Bank on Tuesday upgraded Nigeria’s Gross Domestic Product’s growth projection for 2021 to 1.8 per cent.
It is higher than the 1.1 per cent which was predicted for the country earlier this year.
It was disclosed by the World Bank during its 2021 Global Economic Prospects for June report, released on Tuesday.
The World Bank pointed out that achieving such growth rates will be dependent on higher oil prices, structural oil sector reforms, and market-based flexible exchange rate management.
The bank also noted that borrowing costs in Nigeria had remained higher than before the COVID-19 pandemic.
According to the report, It said the increase in sovereign borrowing costs could worsen fiscal pressures.
The report stated that output in Sub-Saharan Africa shrank at an estimated 2.4 per cent in 2020 as a result of the COVID-19 pandemic, a milder-than-expected recession. It upgraded its economic growth forecast for the Sub Saharan Africa region to 2.8 per cent from 2.7 per cent projected in January.
It was reported that growth in the region has gradually resumed this year, which it stated was a reflection of positive spillovers from strengthening global economic activity, including higher oil and metal prices, and some progress in containing COVID-19, especially in Western and Central Africa.
According to the Bank, despite the recovery, global output will be about two per cent below pre-pandemic projections by the end of the year.
World Bank Group President David Malpass said that while there were welcome signals of global recovery, the pandemic continues to impose poverty and inequality on people in developing countries around the world.
He said that globally coordinated efforts were essential to accelerate vaccine distribution and debt relief, particularly for low-income countries.
By our reporter.