Nigeria’s economic growth will slow down in 2023 - World Bank

Nigeria’s economic growth will slow down next year, a World Bank report released in Washington on Tuesday, October 04, 2022, has said.

The report tagged Africa’s Pulse says the growth will be down from 3.3 percent to 3.2 percent.

Why economic growth will slow down: It blamed the development on inflationary pressures.

What the report said: “The Nigerian economy is projected to slow in 2023, down to 3.2 percent (from 3.3 percent) and persist at this level the following year. Growth will be supported mainly by the rebound in private consumption prompted mostly by accommodative monetary policy as inflationary pressures subside.

"Private consumption expenditure is forecast to decrease this year and grow next year. This performance will likely continue in 2024. On the production side, growth in 2023 will be supported by industry (with growth of 5.1 percent) with the mega-refinery project,” the report said.

The report added that the South African economy will weaken further because of structural constraints.

“Growth will be down to 1.4 percent in 2023, from 1.9 percent, and will rebound to 1.8 percent in 2024. This weak performance is insufficient for the country to address the socio-economic problems of high unemployment and rising inequality.

"Private consumption expenditure growth will moderate from the rebound in 2021. While the recovery from the pandemic shock is incomplete, higher inflation, which reduces consumers’ disposable income, lingering effects of aggressive monetary policy, the deteriorated labor market, and weak confidence will weigh on growth in private consumption."

Inflation is harming Africa: It said global headwinds are slowing Africa’s economic growth with countries contending with rising inflation. It added that high interest rates and debt are forcing African governments to make difficult choices to protect people’s jobs, purchasing power and development gains.

What you should know: The report, which is a biannual analysis of the near-term regional macroeconomic outlook, economic growth in Sub-Saharan Africa (SSA), shows that the war in Ukraine has worsened inflation and depressed business investments and household consumption.

Meanwhile, this comes as Nigerians look forward to a new administration in 2023, hoping for an economic upturn.