Following the release of the World Economic Outlook by , the World Bank has given a cautionary message to Nigeria and other African nations, and suggested steps that would facilitate economic improvement:
The message was relayed by the Chief Economist for African Region, Albert Zeufack via webcast from the bank’s headquarters in Washington DC, USA, yesterday.
Here are highlights of what the World Bank had to say about Nigeria’s economic pulse.
- There should be a balance between massive spending for development on the one hand and moderation in borrowing on the other. Nigeria must, therefore, undertake much-needed development spending while avoiding increasing debt to unsustainable levels.
- Fiscal restructuring is going to be challenging and the government has to be careful in order to balance efforts to develop the country with a moderation in borrowing.
- Zeufack stressed the need for continuous investments in the nation’s infrastructure and those of other African countries, noting the existence of very wide gaps.
- With massive investments, more jobs would be created and would enhance intra-regional trade, which in turn would result in accelerating the growth of the economy.
- Nigeria, South Africa, and Angola, the continent’s largest economies, are seeing a rebound from the sharp slowdown in 2016, but the recovery has been slow due to insufficient adjustment to low commodity prices and policy uncertainty.
- World Bank Lead Economist and the author of the report Africa’s Pulse, Punam Chuhan-Pole, in her remarks, called for inclusive growth as a means of fighting poverty on the continent.
Her words: “With poverty rates still high, regaining the growth momentum is imperative. Growth needs to be more inclusive and will involve tackling the slowdown in investment and the high trade logistics that stand in the way of competitiveness.”
With signs of improvement in Nigeria and foreign bodies from developing countries helping with measures to constantly improve, it won’t take long for the country to finally reach that desired growth.