WASHINGTON, May 11, 2022 – Niger’s economy is expected to grow by 5.2% in 2022, according to a new World Bank report released today. This positive forecast hinges on the return to a normal agricultural season and a gradual improvement in the security situation.
Titled “Resilience in Uncertain Times: Investing in Human Capital,” the report analyzes the impact of the COVID-19 pandemic and climate and security crises on Niger’s economy. Following a disastrous agricultural season due to low rainfall, GDP growth slowed to 1.4% in 2021. This slowdown has led to a decline in per capita income and left more than 2.5 million people in a situation of food insecurity. In addition, average annual inflation climbed to 3.8% in 2021, fueled by rising food prices, particularly for cereals.
“Niger showed resilience in 2020 and avoided an economic recession, despite the multiple crises the country has faced,” says Pierre Xavier Bonneau, acting World Bank Country Manager for Niger. “For Niger to return to its pre-pandemic growth rate, far-reaching economic reforms will be needed to sustainably increase the economy’s productivity rate.”
The report also notes that the effects of the various crises have had a negative impact on Niger’s health indicators, including infant mortality and stunting rates. Unfortunately, there are limited opportunities to give greater priority to health spending. In the short term, the best way to achieve potential health gains is to improve the efficiency of the sector. “To sustainably fund an increase in health spending for better health outcomes, it will be essential to reestablish public health priorities and resume economic growth,” says Paolo Di Lorenzo, senior economist at the World Bank and co-author of the report.
The report’s authors call for efforts to increase the supply and quality of health services and address geographic imbalances in coverage, which can also impact the efficiency of these services. In addition, directing new health financing to primary health care and human resources could bring significant gains in health and service coverage.
