The Federal Government’s bad decisions are making it harder for the country to trade, which could lead to a decrease in economic growth this year based on the World Bank’s predictions.
According to the latest Africa Pulse Report from the World Bank, the country’s economy is estimated to only grow by 2.8% this year – way down from 3.3% last year. The report is called “Leveraging Resource Wealth During the Low Carbon Transition”.
The bank predicted that the economic expansion would increase in the next few years, reaching a yearly rate of 3%. This would mean a 0.2% growth per capita in 2023 and 0.4% in 2024 and 2025, which is insufficient to eliminate extreme poverty. According to what they said, agriculture and commerce will be primarily responsible for the growth.
The report indicated that industry growth in the year 2023 would be bolstered by the mega-refinery project, with a projected increase of 5.6 percent.
The President of the World Bank, David Malpass, expressed his opinion on the progress of Nigeria, and encouraged the government to take steps towards eliminating trade limitations, such as the various currency exchange rates, which are hindering the economic growth of the country.
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At the Spring Meetings of the International Monetary Fund and World Bank in Washington DC, Malpass asserted that it is necessary for the nation to reduce its trade limits and diversify its economy in order to obtain shared prosperity and lasting development.
The World Bank has projected that the Nigerian economy will increase by 2.8% in 2023, prompting the suggestion that attention should be paid to increasing access to electricity, clean water, and investing in agriculture to expedite growth.
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“In Nigeria, the projected growth rate is estimated to be 3.3% in 2022 and 2.8% in 2023, according to our forecast. The World Bank’s main focus is to ensure shared prosperity in a sustainable manner. To accomplish this, many changes need to be implemented in Nigeria.
“Nigeria has a large proportion of its Gross Domestic Product attributed to oil production, which in turn leads to high levels of poverty amongst its population. There is also a great deal of insecurity in the northern and western parts of the country. The World Bank is making efforts to help improve the economy within Nigeria, including introducing trade policies that could increase market development.”
He also pointed out that the Nigerian people have to face the burden of a costly dual exchange rate system, as well as high inflation and a lack of economic diversification which are preventing them from making sufficient progress.
