World Bank Has Predicts Nigerians Will Fall Into Extreme Poverty
World Bank predicts that as many as twenty-three million more people are expected to fall into extreme poverty in Nigeria and Sub-Saharan Africa.
A report through a World Bank newsletter revealed that Russia’s invasion of Ukraine and the commodity market, supply chains, inflation, and financial conditions are what intensified the slowdown in economic growth.
The possibility of high inflation has been raised and it could cause economic stress in the future. World Bank president said that the global recession is the worst it’s been since World War II.
“Even if the global economy manages to avoid another recession, a painful situation of stagflation could persist for several years.”
Growth in the region is projected to slow this year due to economic downgrades of over 60%. Russia’s invasion of Ukraine has caused price pressures and reduced economies. The report read,
“It is expected that more people in SSA will live in extreme poverty, and as the government provides increased subsidies, decreases funds from imports of food and fuel, and with some countries not even acknowledging the war’s effects, it will vary across different countries.”
The Food and Agriculture Organization of the United Nations forecasts that malnutrition and poverty will drastically increase due to food disruption in the region. Persistent inflation will create tough economic constraints and social instability, especially in low-income countries.
Associate Professor of Economics at Pan-Atlantic University says that the economic situation in Nigeria will worsen when the disposable incomes of Nigerians are impacted by the Russia-Ukraine war. Although this might not necessarily impact consumers, it could affect the standard of living for all Nigerians.
The Russian war invasion will affect the supply of wheat and its effect on price. These effects are determined by hunger and poverty levels.
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