Nigeria, 73 Others Yet To Experience Global Recovery – World Bank

Nigeria and 73 other countries are missing out on the global recovery.

Glamtush reports that World Bank experts have said Nigeria and 73 other countries that are eligible to borrow from the World Bank’s International Development Association are yet to experience global recovery.

This news online platform learnt that the statement was made by World Bank Group’s Vice President of Equitable Growth, Finance and Institutions, Indermit Gill, and Vice President of Development Finance, Akihiko Nishio, in a report published on the bank’s blog on Thursday.

The report was titled ‘The global recovery is bypassing the poorest countries’.

According to the report, the world is experiencing economic recovery from the devastating effects of the COVID-19 pandemic, which is considered the strongest post-recession rebound in 80 years.

It said, “The global economy is booming – or so it might seem. Global growth is surging again, only a year after COVID-19 triggered the deepest recession since World War II. This year is likely to mark the strongest post-recession rebound in 80 years: global GDP is expected to expand 5.6 per cent.

“Growth in advanced economies is expected to reach 5.4 per cent – the highest rate in nearly 50 years – powered by rapid vaccination and unprecedented fiscal- and monetary-policy support since the beginning of the pandemic. Almost all advanced economies will go back to their pre-pandemic per-capita income levels in 2022.”

According to the experts, in some parts of the world, clearly, the pandemic’s damage is being repaired quickly.

They said, “Not so in the 74 countries eligible to borrow from the World Bank’s International Development Association. These are the world’s poorest: they account for roughly half of all people living on less than $1.90 a day.

“For them, the global ‘recovery’ is simply nowhere to be seen. In 2021, their growth will be the slowest in more than two decades (except for 2020), reversing years of progress in poverty reduction. For them, the harm will not be repaired quickly. By 2030, one out of every four people here will still be living below the international poverty line.”

The experts said the countries need extra help to catch up, adding that certain things needed to be done to ensure their recovered from the recession.

They said, “These countries will need significant help to dig out of the COVID-19 recession. To return to the path to convergence with wealthier economies, IDA countries will need up to $376bn in additional financing through 2025 – above and beyond the $429bn in regular external financing needs.

“Many of these countries are already heavily indebted, so the option to borrow is limited. Given the fiscal constraints of most countries in the pandemic’s wake, overseas development assistance is likely to remain flat or even decline. Under the circumstances, IDA countries increasingly will need support in the form of grants or zero-interest loans.

“This will be a critical period – for extinguishing COVID-19 for good and also for putting the poorest economies on the right track to overcome deep challenges of development confronting them in the long term.

“A first step will be to speed up the delivery of vaccines: nations with surplus doses should release them to the poorest countries, and vaccine manufacturers should prioritize available doses for countries that need them most.

“The next step is to put in place an ambitious package of policy reforms – to facilitate the transition of labour and capital to high-growth sectors, lower trade costs, and encourage environmentally sustainable investments – that can deliver a green, resilient, and inclusive recovery.”