World Bank projects 2.5% growth for Nigeria’s economy in 2022

The World Bank on Tuesday projected a 2.5 percent growth for the Nigerian economy in 2022.

In its latest Global Economic Prospects report released in Washington, the Bretton Wood institution cited higher oil prices and accelerated growth in telecommunication and financial services as some of the factors responsible for the rebound of the country’s economy.

World Bank projected a 2.4 percent growth for the Nigerian economy in 2021.

The bank expected the global growth to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022, then 3.2 percent in 2023.

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

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“The oil sector should benefit from higher oil prices, a gradual easing of the Organization 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.

“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 percent of the population had been fully vaccinated by the end of 2021.”

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