IMF leaves Nigeria’s 2022 growth rate at 2.7%, raises 2023 projection

The International Monetary Fund (IMF) has reaffirmed a growth rate of 2.7 percent for Nigeria in 2022.

This growth projection is 0.1 percent higher than the 2.6 percent IMF’s forecast in October 2021.

IMF disclosed this in its latest World Economic Outlook (WEO) report released on Tuesday.

It also raised the 2023 projection from an initial 2.3 percent to 2.7 percent.

The World Bank had projected a 2.5 percent growth rate for Nigeria in 2022, owing to the rebound to higher oil prices as well as accelerated growth in telecommunication and financial services.

According to the IMF 2022 report, the growth forecast for Sub-saharan Africa was downgraded to 3.7 percent and 4.0 percent for 2022 and 2023, respectively. This represents 0.1 percentage points lower than the 3.6 percent and 3.9 percent forecast made in its October 2021 report.

Similarly, the IMF reduced its global economic forecast to 4.4 percent in 2023, representing 0.5 percentage points lower than the 4.9 percent projected in 2022 in the October report.

The report also stressed that the new Omicron COVID-19 variant would affect most economies.

“The global economy enters 2022 in a weaker position than previously expected. As the new Omicron COVID-19 variant spreads, countries have reimposed mobility restrictions,” the report reads.

“Rising energy prices and supply disruptions have resulted in higher and more broad-based inflation than anticipated, notably in the United States and many emerging markets and developing economies.

“Global growth is expected to moderate from 5.9 in 2021 to 4.4 percent in 2022 — half a percentage point lower for 2022 than in the October World Economic Outlook (WEO), largely reflecting forecast markdowns in the two largest economies.”