Nigeria’s economy to grow by 2.5% in 2022 – World Bank

Nigeria’s economy is expected to grow by 2.5 percent in 2022 and by another 0.3 percent next year, the World Bank has projected.

The World Bank gave the forecast in its latest Global Economic Prospects report, yesterday.

“In Nigeria, growth is projected to strengthen somewhat to 2.5 percent in 2022 and 2.8 percent in 2023,” said the Washington-based institution, in the section of the report which focused on recent developments in sub-Saharan Africa.

“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. Activity in service sectors is 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,” it added.

According to the Bank, activity in the non-oil economy will remain curbed by high levels of violence and social unrest, as well as the threat of fresh Covid-19 flare-ups with remaining mobility restrictions being lifted guardedly because of low vaccination rates.

It explained that after barely increasing last year, per capita incomes were projected to recover only at a subdued pace, rising 1.1% a year in 2022 – 23, leaving them almost 2% below 2019 levels.

The World Bank stated that in some countries, the services and manufacturing sectors again reeled from the adverse impact of the pandemic, while high unemployment and elevated inflation dented consumer confidence.

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