Nigeria has dropped three places to the
127th position on the latest World Economic Forum’s (WEF) Global
Competitiveness Index (GCI) for 2016-2017, out of 138 countries
surveyed. The country was previously ranked 124th on the index.
At 127th position, Nigeria only
performed better than Madagascar, Yemen, Venezuela, Congo DR, Liberia,
Sierra Leone, Burundi, Mozambique, Chad, Mauritania and Malawi.
The report, which was released wednesday
by WEF, showed that Nigeria ranked lowest in health and primary
education, and was greatly affected by a weaker macroeconomic
environment.
“Nigeria is among the African economies
hardest hit by the reduction in commodity prices, falling three places
to 127th overall,0 almost entirely due to its weaker macroeconomic
environment (down 27 places) and financial sector (down 10 places).
“Although still relatively low, the
government deficit has almost doubled since last year and national
savings have significantly suffered, worsening the current account
position.
“Banks are less solid, reducing the availability of credit; despite the central bank ending its currency peg, financial authorities have retained restrictions on access to the interbank market, meaning access to finance will remain difficult for many businesses.
“Banks are less solid, reducing the availability of credit; despite the central bank ending its currency peg, financial authorities have retained restrictions on access to the interbank market, meaning access to finance will remain difficult for many businesses.
“Additional factors holding back
Nigeria’s competitiveness include an underdeveloped infrastructure
(132nd), which is again rated as the country’s most problematic factor
for doing business; insufficient health and primary education (138th),
with only 63 per cent of children enrolled in primary school; and the
poor quality and quantity of higher education and training (125th),” it
added.
The report also indicated that
sub-Saharan Africa’s competitiveness slightly weakened year-on-year,
mainly as a consequence of deteriorating macroeconomic environments
across the region.
Public finance has been put under stress by economic slowdowns among trading partners and persistently low commodity prices, which affect the commodity-exporting countries, it added.
Public finance has been put under stress by economic slowdowns among trading partners and persistently low commodity prices, which affect the commodity-exporting countries, it added.
These factors, according to the report,
helps to explain why growth on the continent has dropped from over five
per cent two years ago to only 3.5 per cent in 2015 and was projected to
fall further, to three per cent, in 2016.
“Short-run pressure on public funds may
have long-lasting effects on African economies by reducing much-needed
investments in infrastructure and education, while higher uncertainty
about country financial risks could shrink private investments.
“Slower growth and falling commodity
prices have already started to affect the African financial sector,
reducing liquidity and tightening credit conditions. As a result,
although the banking system remains generally solid, business leaders
rate the banking environment as worsening in two-thirds of the countries
assessed by the GCI, and access to finance is mentioned more often as a
problematic factor for doing business in the region.
“Improvements have been achieved in the
business environment, information and communication technologies, and
infrastructure, but these have been insufficient to improve overall
productivity levels, as reflected by a substantially stable GCI
performance at the regional level (this changed by less than 1 per cent
compared to the last edition).
“Continued progress in these areas will
be challenging, given low commodity prices and low growth trajectories
in advanced and emerging economies—but progress is necessary, as these
countries are among the areas where Africa still has the largest
disparities with the world’s most competitive economies.
“Global Competitiveness Report 2016–2017
is being launched at a time of rising income inequality, mounting
social and political tensions, and a general feeling of uncertainty
about the future.
“Growth remains persistently low:
commodity prices have fallen, as has trade; external imbalances are
increasing; and government finances are stressed.
“However, it also comes during one of
the most prosperous and peaceful times in recorded history, with less
disease, poverty, and violent conflict than ever before.
“Against this backdrop of seeming contradictions, the Fourth Industrial Revolution brings both unprecedented opportunity and an accelerated speed of change,” WEF said in the report.
“Against this backdrop of seeming contradictions, the Fourth Industrial Revolution brings both unprecedented opportunity and an accelerated speed of change,” WEF said in the report.
0 comments:
Post a Comment