Home Business News REVEALED: What World Bank said about Nigeria's economy

REVEALED: What World Bank said about Nigeria’s economy

-

An international financial institution, World Bank has indicated in its ‘Economic Update’ issued in Abuja, that Nigeria’s Gross Domestic Product (GDP) growth is expected to hover slightly below two per cent in 2018.

This, according to the World Bank, will be largely driven by non-oil industry and services.

The World Bank’s Economic Update partly reads:

“In the second quarter of 2018, the oil sector contracted by 4.0 per cent. The usually resilient agricultural growth slowed significantly to 1.2 per cent, impacted by the security challenges in the northeast and Middle Belt regions.

“The non-oil industry and services, which constitute over half of Nigeria’s economy, picked up to 3.1 per cent and 2.1 per cent, driven by growth in construction, transport and ICT.”

However, the World Bank’s Economic Updates report noted that the Nigerian economy remains dependent on the small oil sector (under 10 per cent of GDP) for the bulk of its fiscal revenues and foreign exchange earnings.

Nairametrics had reported that the Executive Board of International Monetary Fund (IMF), said the country’s economy was still fragile amid the most recent slow exit from recession.

Directors of the international institution noted, that important challenges remain, as growth in the non‑oil sector has not picked up, inflation remains high and sticky; unemployment is rising, and poverty is high.

The bank emphasized the need for a growth‑friendly fiscal adjustment, which frontloads non‑oil revenue mobilisation and rationalises current expenditure to reduce the ratio of interest payments to revenue to a more sustainable level and create space for priority social and infrastructure spending.

About World Bank

The World Bank is an international financial institution that provides loans to countries of the world for capital projects. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).

Coronation Research

World Bank’s most recent stated goal is the reduction of poverty. As of November 2018, the largest recipients of world bank loans were India ($859 million in 2018) and China ($370 million in 2018) through loans from IBRD.

Coronation Research

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Popular

Understanding Mutual Fund Fees

INSIGHT: Why you really should consider investing in mutual fund today

A Mutual Fund is a Trust or Company that pools money from many investors and invests in a specified class of securities such as stocks, bonds, real estate or a balanced mix of asset classes.
Ellah Lakes appoints new Managing Director, Ellah Lakes appoints Chuka Mordi, Ellah Lakes acquires Telluria Limited, Nigerian Stock Exchange NSE

NSE has placed these 34 companies on red alert

Authorities of the Nigerian Stock Exchange (NSE) has placed red alerts on some 34 quoted companies as a disciplinary measure for breaching some of its extant rules.
Mile 2 Road

Why Lagos is closing Mile-2 Road inward Tin Can Island for 48 hours

Mile 2 road inward Tin Can Island ports corridor will be closed by the Lagos State Government (@followlasg) for 48 hours, the Permanent Secretary of the Ministry of Transportation, Taiwo Salaam has revealed.