The World Bank on Tuesday raised its 2021 and 2022 economic growth forecasts for Nigeria to 2.7 per cent and 2.8 per cent respectively.
The bank disclosed this in the latest edition of its Nigeria Development Update.
In the June 2021 edition of the NDU, the World Bank projected a growth rate of 1.8 per cent in 2021 and 2.1 per cent in 2022, projecting an upward review of the Nigerian economy in the new edition.
According to the new report, the Nigerian economy has experienced a rebound that is faster than expected.
The report read, “The Nigerian economy has recovered at a faster-than-expected pace in 2021, though the statistical base effect is largely responsible for its recent performance.”
“The World Bank has revised its growth projections for 2021-2022 upward. The June 2021 edition of the Nigerian Development Update forecast a 1.8 per cent growth rate for 2021, reflecting the expectations of declining incomes, heightened insecurity, and subdued oil production that prevailed at the time.
“However, the recent growth of services and manufacturing has exceeded expectations, leading to revised projections.”
It added that there has been improved performance in the manufacturing sector, alongside growth in telecoms, trade, transportation and financial services.
“By contrast, the growth of services was largely organic, albeit uneven: telecoms expanded robustly during the pandemic, while trade, transportation, and financial services also recovered, but professional services, accommodation and food services, and other services contracted,” it added.
The report further stated that the Nigerian economy will likely grow more slowly despite the improved projections.
It read, “Nonetheless, despite the improved outlook, Nigeria’s GDP is forecast to grow more slowly compared to emerging economies and oil-producing countries.”