Concerned about the level of violence and poverty in Nigeria, the International Monetary Fund (IMF) suggested finding workable ways to reverse the trend.
It also observed that several nations were being shaken by soaring inflation, escalating geopolitical unrest, and financial instability and urged coordinated action to combat the ills that could derail its ambitious economic reforms and fundraising plans.
These recommendations were presented by David Malpass, the president of the World Bank, on Thursday during a media conference in Washington, DC, on the eve of the 2023.
Due to the aforementioned issues and others, the Nigerian economy is projected to increase by 2.8% in 2023, down from 3.3% in 2022, according to Malpass.
“Growth of 2.8% projected for Nigeria in 2023,” he stated. Our main concern is shared wealth. Nigeria requires numerous adjustments. In the north and west, where the economy is mostly dependent on oil, many people live in poverty and instability. The World Bank is developing a more productive economic structure. Concerns about the dual currency rate regime have also increased the cost of living for Nigerians. Diversification is not possible because of high inflation, he claimed.
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He claims that the two problems of a fragile recovery from the COVID-19 epidemic and Russia’s invasion of Ukraine have made the majority of economies vulnerable, especially the low-income countries that are heavily indebted.
He stated that initiatives were underway to resolve the dislocation of global credit and normalize interest rates across jurisdictions.
It will take time for assets to increase in value, he said. More growth must be encouraged through legislation in order to end the cycle of capital being granted to the wealthy. Checking capital depletion is necessary. We want to see a steady rise in living standards. The importance of resilience and sustainability needs to be emphasized more. We are improving the services we offer to all customers. The International Bank for Reconstruction and Development is working to raise $50 billion in funds and expand bilateral guarantee programs. We are examining options for debt reduction. Good information should be exchanged regarding debt sustainability, timeliness, and the development of structures to accomplish all of these.
“Loan restructuring is also important. Regional African markets are sluggish. This requires immediate attention.
The World Bank’s real success is measured in how well its citizens are doing. A breakthrough on debt overhangs is what I’m hoping for.
The World Bank underwent COVID, which was difficult for the clients. We moved to offer $150 billion in support. We are addressing the implications of the invasion by Russia on the food and energy shortages. He continued, “We have strived to create additional investments.
The bank stated that the economic growth is anticipated to modestly increase to an average annual rate of 3% in 2024–25 in its Africa Pulse Report April 2023 edition, headlined “Leveraging resource wealth during the low carbon transition”.
On the production side, the report noted that the mega-refinery project will help industry grow in 2023 (with a growth of 5.6%).
According to the research, Sub-Saharan Africa’s economic performance varies across subregions and nations.
According to the report, the real gross domestic product (GDP) growth of the Western and Central Africa (AFW) and Eastern and Southern Africa (AFE) subregions will both fall to 3.0 percent in 2023 from 3.5% in 2022, and to 3.4% from 3.7% in 2022, respectively.
The performance of the region is nevertheless hindered by the continent’s biggest nations’ slower growth.
As the energy situation worsens, economic activity in South Africa is projected to contract further in 2023 (by 0.5%), while Nigeria’s projected 2.8% growth rebound is still precarious because oil output is still low and the new administration is dealing with a number of difficult policy issues, according to the report.
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