Nigeria’s GDP 2023 : Nigeria’s economy would increase by an average of 3.2 percent between 2022 and 2023, according to the African Development Bank (AfDB), despite decreasing oil production and rising insecurity.
This was stated by the African Development Bank (AfBD) in its African Economic Outlook 2022 study, which was issued on Wednesday at the AfBD’s Annual General Meeting (AGM) in Accra, Ghana.
According to the report, Nigeria, the area’s largest economy, is driving growth in the West African region.
“Average regional growth was 4.3 percent in 2021 and is expected to stay strong at 4.1 percent in 2022,” according to the report.
Despite rising food, diesel, and gas prices, and chronic supply interruptions exacerbated by the Russia–Ukraine conflict, it predicted that Nigeria’s GDP would rise by 3.4 percent in 2022 and 3% in 2023, representing an average of 3.2 percent over two years.
The analysis also revealed that high oil prices, a revival in the service and manufacturing sectors, and government policy assistance for agriculture would boost the Nigerian economy.
“Nigeria’s growth was mostly driven by services, partially offsetting a drop in oil output,” it continues.
“Due to continuously low oil production and increased insecurity, growth will slow to 3.2 percent in 2022–23.” Inflation is expected to remain high in 2022, at 16.9%, and above pre-pandemic levels in 2023, owing to rising food, diesel, and gas costs, as well as ongoing supply disruptions exacerbated by the Russia–Ukraine conflict.
“Capital inflows are expected to resume, while oil exports are expected to rise somewhat,” says the report. A negative output effect due to decreased oil production, fuelled by infrastructural shortcomings and rising insecurity, may partially offset the benefit of an anticipated positive oil price shock on exports.
Optimized revenue collection will help reduce the fiscal deficit to 4.5 percent of GDP on average. On new borrowing, the public debt is expected to exceed 40% of GDP by 2024.
“Rising insecurity and policy uncertainty, reinforced by the reversal of the earlier scheduled withdrawal of premium motor spirit subsidies a year before the 2023 elections, may increase the headwinds to the forecast.”
The research advised Africa to enhance immunization rates, maintain a conservative monetary policy, and invest more in its healthcare system
“In 2022, the anticipated marginal current account surplus of 0.1 percent of GDP could shift into a 0.2 percent deficit in 2023.” Improve.