Published January 8, 2021
Okechukwu Nnodim , Abuja
The World Bank on Thursday projected a five per cent growth for emerging market and developing economies in 2021 .
Nigeria is a developing economy and the financial institution ’ s projection was contained in its January 2021 Global Economic Prospects report.
“ Growth in emerging market and developing economies is envisioned to firm to five per cent in 2021 , but EMDE output is also expected to remain well below its pre -pandemic projection,” the bank said.
The January 2021 Global Economic Prospects report projected a return to global growth , but stated that risks would remain as economic activity and incomes were likely to stay low for an extended period .
It stated that although the global economy was emerging from the collapse triggered by the pandemic, the recovery was projected to be subdued .
“ Global economic output is expected to expand four per cent in 2021 but still remain more than five per cent below its pre – pandemic trend, ” the bank stated .
It added, “ Moreover, there is a material risk that setbacks in containing the pandemic or other adverse events derail the recovery .”
The financial institution said the pandemic had exacerbated the risks associated with a decade -long wave of global debt accumulation.
It said debt levels had reached historic highs , making the global economy particularly vulnerable to financial market stress.
It noted that the pandemic was likely to steepen the long – expected slowdown in potential growth over the next decade , undermining prospects for poverty reduction.
It said the heightened level of uncertainty around the global outlook highlights policy makers ’ role in raising the likelihood of better growth outcomes while warding off worse ones .
“ Limiting the spread of the virus , providing relief for vulnerable populations , and overcoming vaccine -related challenges are key immediate priorities ,” the bank stated.
It noted that with weak fiscal positions severely constraining government support measures in many countries , an emphasis on ambitious reforms was needed to rekindle robust , sustainable and equitable growth .