The World Bank has disclosed that the global economy is expected to expand 5.6% in 2021, forecasting that Nigeria’s economy will grow by 1.8% for the period. This would be the fastest post-recession global growth in 80 years due to economic rebounds from developed and middle-income economies.
The World Bank disclosed this in its June Global Economic Prospects for 2021 report on Tuesday, adding that many emerging markets and developing economies continue to struggle with the COVID-19 pandemic and its aftermath.
“Despite the recovery, global output will be about 2% below pre-pandemic projections by the end of this year. Per capita income losses will not be unwound by 2022 for about two-thirds of emerging market and developing economies. Among low-income economies, where vaccination has lagged, the effects of the pandemic have reversed poverty reduction gains and aggravated insecurity and other long-standing challenges,” the World Bank said.
World Bank Group President, David Malpass, acknowledged that despite welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world. “Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries. As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability” he said.
The World Bank forecasts that emerging market and developing economies will expand at 6% this year, supported by higher demand and elevated commodity prices. They added that the recovery in many countries is being held back by a resurgence of COVID-19 cases and lagging vaccination progress, as well as the withdrawal of policy support in some instances. Growth in low-income economies this year is anticipated to be the slowest in the past 20 years other than 2020, partly reflecting the very slow pace of vaccination. Low-income economies are forecast to expand by 2.9% in 2021 before picking up to 4.7% in 2022. The World Bank forecasts Nigeria’s economy to grow by 1.8% in 2021 and 2.1% in 2022, as economic activities in Sub Saharan Africa is on course to rise by 2.8% in 2021 and 3.3% in 2022.
Nairametrics reported in April that the International Monetary Fund lifted its global growth outlook to 6% in 2021 (0.5% point upgrade) and 4.4% in 2022 (0.2 percentage point upgrade), after an estimated historic contraction of -3.3% in 2020 due to the effects of the COVID-19 pandemic. Nigeria is expected to grow by 2.5% in 2021 and 2.3% by 2022, while South Africa is projected to hit growths of 3.1% and 2.0% for the respective years in focus.