The President of World Bank Group, Jim Kim, has advised Nigeria and other developing nations to double their efforts in domestic reforms to ensure positive growth of their economies.
The advice is contained in the bank’s Global Economic Prospects (GEP) report released on Thursday in Abuja.
Kim hinted that Nigeria and other developing countries were headed for a year of disappointing growth, as weakness recorded in the first quarter of 2014 had delayed an “expected pick-up” in economic activities.
He said many factors contributed to the gloom in economic growth in the countries.
He added that the factors included “bad weather in the U.S., the crisis in Ukraine, rebalancing in China, political strife in several middle-income economies, slow progress on structural reforms and capacity constraints.
"Also, growth rates in the developing world remain far too modest to create the kind of jobs we need to improve the lives of the poorest 40 per cent of the people in those countries.
"Clearly, countries need to move faster and invest more in domestic structural reforms to get broad-based economic growth to levels needed to end extreme poverty in our generation.’’
The World Bank Group boss said that the bank had lowered its forecasts for developing countries at 4.8 percent this year, down from its January estimate of 5.3 percent.
He, however, said that the forecasts would rise to 5.4 percent and 5.5 percent in 2015 and 2016 respectively, noting that China was expected to grow by 7.6 percent this year, but would depend on the success of rebalancing efforts.
Kim said that in spite of the first quarter weakness in the U.S., the recovery in high-income economies was gaining momentum, saying these economies were expected to grow by 1.9 percent in 2014, accelerating to 2.4 percent in 2015 and 2.5 percent in 2016.