CBN forecasts GDP growth of 3% by end of 2021

The Central Bank of Nigeria (CBN) says the country’s gross domestic product (GDP) is expected to rise between 2.5 percent and 3 percent by the end of 2021. 

Godwin Emefiele, CBN governor, made the projection at the 14th annual Chartered Institute of Bankers of Nigeria (CIBN) banking and finance conference in Abuja on Tuesday.

Nigeria’s GDP accelerated to 5.01 percent in the second quarter (Q2) of 2021 for the third consecutive quarter following the negative growth rates recorded in the second and third quarters of 2020.

Q2 2021 growth also makes it the strongest growth since the fourth quarter of 2014.

“With continued improvements in the economy, I am optimistic that by the end of the year, our economy will not only close the output gap brought about by the 2020 recession but that we would end the year with an annual GDP growth of between 2.5 – 3.0 percent up from -1.92 percent in 2020,” Emefiele said.

“Notwithstanding the positive news your excellency, I would admit that growth remains fragile.

“We are not out of the woods yet given the challenges in combating the COVID-19 pandemic and would therefore urge all stakeholders to remain vigilant to prevent a resurgence of the virus.

“The implementation of our various interventions need to be intensified to sustain the recovery and stimulate further growth of our economy.

“It is imperative that we work to build a more resilient economy that is better able to contain external shocks whilst supporting growth and wealth creation in key sectors of our economy.

“Proactive steps on the part of stakeholders in the banking and financial system in supporting the growth of sectors such as agriculture, ICT and infrastructure, will strengthen our ability to deal with the challenges that have been brought on by COVID-19, and stimulate the growth of our economy.”

In June, the World Bank projected that the Nigerian economy will expand at a moderate rate of 1.8 percent this year and increase to 2.1 percent in 2022, while International Monetary Fund (IMF) retained projected growth of 2.5 percent for Nigeria this year.