Nigeria’s economy will grow by 2.2 per cent, a new World Bank report on Global Economic Prospects has revealed, as growth in Sub-Saharan Africa is expected to rise to 3.4 percent in 2019, and expected to hit 3.7 per cent in 2020-2021.
The Sub-Saharan Africa had experienced a below potential growth in 2018, accumulating 2.7 per cent last year, rising marginally from 2.6 per cent recorded in 2017 due to a sluggish expansion in Angola, Nigeria, and South Africa, who are rated as Africa’s three largest economies in the report.
While Nigeria’s economy growth is estimated to rise by 2.2 per cent in 2019, the country’s growth is projected to rise 2.7 per cent in the period of 2020-2021. Meanwhile a recovery in Angola’s oil sector linked to new oil fields will boost the country’s economy growth to 2.9 per cent in 2019, and moderating to an average of 2.7 per cent in 2020-2021.
Economy growth in South Africa will pick up by 1.3 per cent before upgrading to 1.7 per cent in the period of 2020-2021. While the rest of Sub-Saharan Africa is expected to remain relatively solid in growth rate.
Reason for Nigeria’s economy growth
Despite experiencing lackluster consumer demand in non-oil activity and fall in oil production partly caused by pipeline closures in mid-2018, Nigeria’s economy will rise by 2.2 per cent in 2019, and record a 2.4 per cent in 2020-2021 period on the believe that oil production will recover, and gradually increase.
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While a post-drought boosts agricultural production, and a slow improvement in private demand will constrain growth in the non-oil industrial sector, according to the Global Economic Prospects of World Bank.
Factors contributing to Sub-Saharan Africa’s economy growth
With the rebound of Angola, Nigeria, and South Africa’s economy, the Sub-Saharan Africa’s economy is projected to pick up to 3.4 percent in 2019, and two years after, it will rise to 3.7 percent in 2020-2021 period.
Contributing factors to the rise of Sub-Saharan Africa’s economy is linked to an increase in investment into large economies, and diminished policy uncertainty in the continent. Increase in oil production in Angola and Nigeria will support growth, including robust growth in non-resource intensive countries, the report stated.