The economy of Nigeria is expected to increase by 2.7 percent in 2022 and 2023, the International Monetary Fund has projected.
IMF made the prediction in its January World Economic Outlook released in Washington on Tuesday. It tilted the outlook “Rising Caseloads, a Disrupted Recovery, and Higher Inflation”.
The institution, however, projects Sub-Saharan Africa’s growth to be 3.7 per cent in 2022 and 4.0 per cent in 2023, saying that 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.
IMF in the report also stressed that the new Omicron COVID-19 variant would affect most economies.
It reads: “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.
“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.”