World Bank projects Nigeria’s economy to grow by 2.5% in 2022

The World Bank on Tuesday projected Nigeria’s economy to grow by 2.5 per cent 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.

In 2021, the World Bank had projected a 2.4 per cent growth for the Nigerian economy.

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

According to the report, “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 report read further, “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.”