How Nigeria’s Projected 2.1% Growth Will Affect Africa

By Ikenga Chronicles January 8, 2019

How Nigeria’s Projected 2.1% Growth Will Affect Africa

Nigeria’s 2.1 per cent economic growth projection in 2019 has been tipped to help Africa’s growth by 2.9 per cent in 2019.

This was the prediction by United Nations Secretary-General on the ‘Socioeconomic Trends’ West African sub-region, forecasted an economic rebound in the West Africa sub-region in 2019.

“The region’s economic growth is projected to reach 2.9 per
cent in 2019, notably owing to forecast growth of 2.1 per cent in Nigeria, accounting for 75 per cent of the region’s global economic output,’’ the report said.

The report, however, said levels of public debt continued to increase with several countries at a debt-to-Gross Domestic Product (GDP) ratio of 69.8 per cent.

This is above the 50 per cent ceiling recommended by the International Monetary Fund (IMF) and the World Bank.

“The Central Bank of West African States forecast an economic rebound in West Africa for 2019, except in the services, building and construction sectors.

“In the medium term, without a change in policies and with a favourable external environment, growth should reach four
per cent,’’ the report added.

The report noted challenges to the realisation of the Sustainable Development Goals (SDGs) in West Africa and the Sahel to include a low level of domestic and external investment compared to other regions.

It added that continuing impediments to domestic revenue mobilisation, along with the need to improve the efficiency of public spending, trade and financial integration, were other challenges.

The report said regional economic integration, including the free movement of persons, goods and services, had been hindered by security concerns.