Protectionism, Policy Uncertainty Risks To Global Economic Recovery, Says World Bank Chief

Protectionism, Policy Uncertainty Risks To Global Economic Recovery, Says World Bank Chief

Protectionism, Policy Uncertainty Risks To Global Economic Recovery, Says World Bank Chief

Kim and the Managing Director, International Monetary Fund, Christine Lagarde, who spoke at separate press conferences in Washington DC, United States, also advised Buhari to invest in things that would enhance economic growth.

"Over this next year, not only in Nigeria but in all of Africa".

He said after acceding to President Muhammadu Buhari's request that specific attention be shifted to the northern region during his first meeting him, a task he said had been very hard, attention must not shift to sectors that would future economic growth. The work there has been very, very hard.

He said: "Despite that, there is so much turbulence in the northern part of the country, and there is the hit that was taken from the drop in the oil prices". I think things are just now getting better.

Noting that Nigeria now spends less than one percent of its annual budget on health, Kim stated: "The conversation we need to have with Nigeria, I think, is in many ways, related to the theme that I brought to the table just this past week which is, investment in human capital. The percentage of the Gross Domestic Product that Nigeria spends on healthcare is less than one percent". Nigeria has to think ahead and invest in its people.

"It can't rely just on oil prices going back up".

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THE World Bank has warned Nigeria against the danger of putting trust in the prices of crude oil going up again and making its economic growth projections based on same.

The situation in Nigeria, according to Kim, was also same with most other African countries.

The growth figures, she said, were far too small considering the huge demographic potential of Nigeria and other countries in the region.

"But the one thing we know, the one thing we know, is that better health outcomes, better education outcomes will be critical no matter what the global economy looks like".

"And this is true for most of Africa".

Finance ministers and central bankers from 189 members countries have gathered in Washington this week to discuss the challenges and opportunities facing the global community during the annual World Bank Group-IMF Annual Meetings.

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Citing a recent World Bank study, which shows that investment in human capital, especially in education and healthcare, enhances economic growth, Kim said the focus of the Federal Government should be on investing in what would help its economy to grow rapidly. Trade is picking up, but investment remains weak. We're concerned that risks such as a rise in protectionism, policy uncertainty, or possible financial market turbulence could derail this fragile recovery. Those countries grow at an average growth of 2.5 percent.

He said countries need to build resilience against the overlapping challenges the world faces today, including the effects of climate change, natural disasters, conflict, forced displacement, starvation and disease.

"To help countries address these challenges, we are working to maximise finance for development".

She said: "On sub Saharan Africa, it is one region of the world where growth is way suboptimal". Help broaden the benefits from technological progress and integration.

Furthermore, Lagarde said the fund would develop new analytic tools to support a candid assessment of corruption where it is undermining macroeconomic performance and allow for more granular policy advice to help tackle corruption while ensuring even-handed treatment across the membership.

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