World Bank Projects 2.5% Economy Growth For Nigeria In 2022

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World Bank Projects 2.5% Economy Growth For Nigeria In 2022

World Bank Projects 2.5% Economy Growth For Nigeria In 2022.

Nigeria’s economy is expected to increase by 2.5 percent in 2022 and 2.8 percent in 2023, according to the World Bank.

This prediction for 2022 is somewhat higher than the predicted 2.4 percent increase in 2021.

Higher oil prices and activity in service industries like telecommunications and financial services, according to the bank, would fuel this somewhat upward rise.

This was revealed in the Washington-based organization’s newest Global Economic Prospects study, which was issued on Tuesday.

The report read in part, “In Nigeria, growth is projected to strengthen somewhat to 2.5 per cent in 2022 and 2.8 per cent in 2023.

READ ALSO: Nigeria’s Crude Oil Proceeds Hit N12.4tn Over 11 Months

“The oil sector should benefit from higher oil prices, a gradual easing of the Organisation of the Petroleum Exporting Countries production cuts, and domestic regulatory reforms. Activity in service sectors is expected to firm as well, particularly in telecommunications and financial services.”

However, it was suggested that the recovery from pandemic-related income, job losses, and inflation would be gradual.

It went on to say that concerns of violence and social instability, as well as rising COVID-19 risks, would stifle non-oil sector economic activity.

“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.

“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 — just about 2 per cent of the population, had been fully vaccinated by the end of 2021,” the report stated.

The report read, “After barely increasing last year, per capita incomes are projected to recover only at a subdued pace, rising 1.1 per cent a year in 2022-23, leaving them almost 2 per cent below 2019 levels.

“In South Africa and Nigeria, per capita incomes are projected to remain more than 3 per cent below pre-pandemic levels in 2023.”

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