Africa’s Pulse Report 2016 confirms Nigeria's economic recovery

The report emphasized the need for an internally generated growth, and the need for Africa to reduce its reliance on external economy and trade.

In the latest report of Africa’s Pulse, a bi-annual analysis of the state of African economies conducted by the World Bank, showed Nigeria and other African countries’ economy rebounding from its declined growth in 2016.

According to World Bank’s statement released on its websites, Nigeria, South Africa, and Angola are currently on economic recovery path from the sharp slowdown in 2016, although this recovery is slow due to fluctuating global commodity prices and policy uncertainty.

“However, the recovery remains weak, with growth expected to rise only slightly above population growth, a pace that hampers efforts to boost employment and reduce poverty”, World Bank said.

On the overall impact external trade on the performance of economies in the region, the report noted that “the fall in commodity prices represents a significant shock for the region, as fuels, ore and metals account for more than 60% of the region’s exports.”


“The impact is seen most in oil-exporting countries, where average growth is estimated to have slowed from 5.4% in 2014 to 2.9% in 2015. Growth fell sharply in Nigeria, the and. Activity also weakened significantly in non-energy mineral-exporting countries, including , South Africa and .”

While noting a gradual pickup in global commodity market, the report forecasts that average growth in the region will remain subdued at 3.3% in 2016.

“For 2017–18, growth is projected to average 4.5%. The projected pickup in activity in 2017–18 reflects a gradual improvement in the region’s largest economies—Angola, Nigeria, and South Africa—as commodity prices stabilize and policies become more supportive of growth.”

Mr. Punam Chuhan-Pole, World Bank Africa acting Chief Economist and Author of the report, called for a more conducive business environment and less reliance on external trade for growth.

“With external conditions likely to remain less favorable than in the past, African countries need to accelerate the pace of structural reforms aimed at boosting competitiveness and diversification.”


“In most countries this will mean improving the business climate, reducing the cost of cross-border trade, reforming the energy sector to ensure affordable, reliable, and sustainable energy services, and making the financial sector more inclusive.”

This report is coming at time a Uk-based economic firm, World Economics, states that Nigeria is out of its recession. Though, most analysts disagreed with the firm's assertion as economic recovery from recession requires most structural policy actions which have not be taken by the current administration.

Also, the over-reliance of the Nigeria’s government recently launched Economic Recovery and Growth Plan (ERGP) on crude oil earnings leave much to be desired about the country’s early recovery.


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