World Bank Forecasts 2.5% Growth for Nigeria in 2022

Amid fresh threats from COVID-19 variants and others, Nigeria’s growth is projected to strengthen to 2.5 per cent in 2022 and 2.8 per cent in 2023.

The World Bank said this in Washington at the presentation of its January 2022 Global Economic Prospects report.

According to it, global growth is expected to decelerate markedly from 5.5 per cent in 2021 to 4.1 per cent in 2022 and 3.2 per cent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.

The World Bank projection is coming on the heels of the Central Bank of Nigeria forecasting a GDP growth rate of 3.2% in 2022.

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The CBN Governor Godwin Emefiele disclosed this as part of his personal statements at the Monetary Policy Committee meeting held in December last year.

The said  a rise in inflation, debt and income inequality could endanger the recovery in emerging and developing economies, which Nigeria is a part of.

For Nigeria, the oil sector should benefit from higher oil prices, a gradual easing of the Organisation of the Petroleum Exporting Countries (OPEC) production cuts, and domestic regulatory reforms.

“Activities in service sectors are expected to firm as well, particularly in telecommunications and financial services.

“However, the reversal of pandemic-induced income and employment losses is expected to be slow, this, along with high food prices, restrains a faster recovery in domestic demand.