The African Development Bank (AfDB) has forecast economic growth of 2.3 per cent in 2019 and 2.4 per cent in 2020.
This development has had an impact on the implementation of the economic recovery and growth plan by President Muhammadu Buhari led government.
The AfDB reported this in its African Economic Outlook for 2019 released on Tuesday.
Commenting on the launch of the report in Abidjan, AfDB President Akinwumi Adesina said that the future of the African continent looks very promising.
He notes that the recovery in commodity prices is boosting domestic demand and investment in infrastructure, while Africa’s real GDP continues to improve.
According to the report, the continent’s general economic performance will continue to improve with GDP estimated to accelerate to 4.0% in 2019 and 4.1% in 2020 away from the 3.5% in 2018 and 2017 and up from 2.1% in 2016.
AfDB, however, says the outlook depends on the pace of implementing the Economic Recovery and Growth Plan, which anchors Nigeria’s industrialisation by establishing industrial clusters and staple crop processing zones to give firms a competitive edge through access to raw materials, skilled labour, technology, and materials.
The report also states that the slide in oil prices from late 2018, output cut by the Organisation of the Petroleum Exporting Countries (OPEC) pose a downside risk to Africa’s populous nation’s economic outlook.
Other factors that may hinder the country’s economic growth, according to AfDB, include the delay in passage of the 2019 budget and the general elections.