20180916

Nigeria Ranks Among Least Performing Economies

Nigeria and 10 other emerging countries have been ranked among the non-outperforming economies in a new report by McKinsey Global Institute, the research arm of McKinsey and Company.

Though the report recognised that Nigeria experienced strong periods of growth between 1965 and 2016, McKinsey said it did not make the cut because its growth was volatile and was followed by sharp downturns following the booms.

Other non-outperforming economies as identified by McKinsey are Argentina, Brazil, Egypt, Mexico, Pakistan, Poland, Russia, Philippines, South Africa and Turkey.

The research published on Wednesday, examined the long-term economic track record of 71 developing economies and identified China and India as the leading outperformers.

These two economies, according to the report, accounted for almost two-thirds of the world’s Gross Domestic Product growth and more than half of new consumption over the past 15 years.

The study, which aims to identify outperforming countries that have experienced strong and sustained growth, identified other outperformers as Hong Kong, Indonesia, Malaysia, Singapore, South Korea and Thailand.

The report stated, “Collectively, the outperformers have been the engine for lifting almost one billion people out of extreme poverty, helping to meet a key United Nations Sustainable Development Goal.

“Indeed, rising prosperity in these countries has not just reduced poverty, but also enabled the emergence of a new wave of middle and affluent classes.”

Analysts attributed the poor performance in this region to poor infrastructure and lack of diversity in export.

“In general, connectedness to other regions is poor and exports from countries in sub-Saharan Africa lack diversity. For example, more than 90 per cent of goods exported from Nigeria and Angola are oil-related. Improving infrastructure and continuing to build out government effectiveness to attract foreign investment remain important opportunities for the region,” the report stated.