After last year’s 3.5 per cent contraction, projections have now revealed that Nigeria’s Gross Domestic Product will in 2021 expand by 1.5 per cent.

The United Nations disclosed this in its latest World Economic Situation and Prospects report.

The UN, however, noted that tighter foreign exchange liquidity, mounting inflationary pressures, and subdued domestic demand overshadowed the medium-term outlook.

The report called for smart investments in economic, societal, and climate resilience to ensure sustainable recovery following the adverse effects of the COVID-19 pandemic.

“After a contraction of 3.4 per cent in 2020, Africa is projected to achieve a modest recovery, with regional GDP expanding by 3.4 per cent in 2021. This recovery is predicated on the rise of domestic demand and the pick-up of exports and commodity prices,” it noted.

The report disclosed that the global economy shrank by 4.3 per cent, representing more than two and half times higher than during the 2009 global crisis.

Going by the report, the economy is expected to experience a 4.7 per cent modest recovery of 4.7 in 2021 which would barely offset the losses of 2020.

The World Economic Situation and Prospects 2021 is a report produced by the UN Department of Economic and Social Affairs in partnership with the UN Conference on Trade and Development (UNCTAD) and the five UN regional commissions.

The UN acknowledged the economic downturn in Africa.

Commenting on the report, the UN Secretary-General António Guterres stated, “We are facing the worst health and economic crisis in 90 years. 

“As we mourn the growing death toll, we must remember that the choices we make now will determine our collective future. 

“Let’s invest in an inclusive and sustainable future driven by smart policies, impactful investments, and a strong and effective multilateral system that places people at the heart of all socio-economic efforts.”

The report added, “The crisis is already increasing unemployment, poverty, and inequality. Most countries are facing enormous challenges to keep the pandemic under control and mobilise financial resources to support health systems, protect vulnerable groups, and support recovery.”