JP Morgan beats down Nigeria’s economic growth projection

JP Morgan Chase has taken a different seat concerning the economic growth rate of Nigeria in 2021, projecting Africa’s largest economy will continue to experience slow recovery.

The global bank stated that the growth of Nigeria’s economy will not surpass two percent as previously predicted by the International Monetary Fund (IMF) in Q2 this year.

IMF projected that the country’s economy is set to rise by 2.5 percent in 2021, but will retract to 2.3 percent next year, however, JP Morgan doesn’t share same sentiment.

The American bank said due to hindrances like foreign exchange scarcity, return of COVID-19 for a third wave, and inability to accelerate vaccine rollout, Nigeria’s economy will grow by 1.5 percent.

Read also: Despite two quarters of GDP growth, 47.8% of Nigeria’s economy still in recession

In JP Morgans words, “continued lack of foreign-exchange liquidity, underlying economic weakness, an emerging third wave of Covid-19 infections and a slow rollout of vaccines will likely slow the recovery process.”

JP Morgan’s estimate is closer to the World Bank’s expectation, which is 1.8 percent. Nigerian Economic Summit Group (NESG) had put it’s own at 2.9 percent.

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