The World Bank says Nigeria’s economic growth projection for 2023 has been cut from its previous 3.1 percent to 2.9.
He explained that this is due to production challenges in the oil sector, growing insecurity and flooding.
The bank explained in its latest ‘Global Economics Prospects’ report that, “In Nigeria, growth is expected to slow to 2.9 percent in 2023 and remain at that rate in 2024, just above population growth. .
“Growth momentum in the non-oil sector is likely to be constrained by continued weakness in the oil sector. Existing production and security challenges and a moderation in oil prices are expected to hamper a recovery in oil production.
“Political uncertainty, sustained high inflation, and the rising incidence of violence are anticipated to moderate growth. Agriculture growth is forecast to weaken due to damage from last year’s floods.
“As the fiscal position is expected to remain weak due to high borrowing costs, lower energy prices, slow oil production growth, and subdued activity in non-oil sectors.”
The main bank also said a sharp and long-lasting slowdown was expected to hit developing countries hard this year as the global economy weakened.
According to the bank, global growth in 2023 is expected to slow to 1.7 percent, down from the three percent previously projected in June 2022.
Therefore, he warned that shocks, including higher-than-expected inflation and sudden increases in interest rates to contain price rises, or a resurgence of a pandemic, could push the global economy into recession.
“Given the fragile economic conditions, any new adverse development, such as higher-than-expected inflation, abrupt increases in interest rates to contain it, a resurgence of the COVID-19 pandemic, or escalating geopolitical tensions, could push the global economy to a crisis. recession,” the report said.
“This would mark the first time in more than 80 years that two global recessions have occurred in the same decade.
“The global economy is projected to grow 1.7% in 2023 and 2.7% in 2024. The sharp slowdown in growth is expected to be widespread, with forecasts revised downward in 2023 for 95% of advanced economies and nearly 70% of emerging market and developing economies.
For sub-Saharan Africa (SSA), the region that accounts for about 60 percent of the world’s extreme poor, the bank said growth in per capita income during 2023-24 is expected to average just 1.2 percent. , a rate that could cause poverty. rates to go up.