Nigeria’s Growth Rate Has Been Revised By The World Bank to 2.7 Percent In 2021 And 2.8 Percent In 2022

The World Bank has upped Nigeria’s economic growth predictions for 2021 and 2022 to 2.7% and 2.8%, respectively.

The Bank made the announcement in the most recent edition of its Nigeria Development Update on Tuesday.

The World Bank anticipated 1.8 percent growth in 2021 and 2.1 percent growth in 2022 in the June 2021 edition of the NDU. The World Bank, on the other hand, expects an upbeat assessment of the Nigerian economy in the next edition. According to the new data, the Nigerian economy is recovering faster than projected.

“The Nigerian economy has recovered at a faster-than-expected pace in 2021, though the statistical base effect is largely responsible for its recent performance,” according to the research.

“The World Bank has raised its growth forecasts for 2021-2022.” The Nigerian Development Update for June 2021 forecasted a 1.8 percent growth rate for 2021, reflecting the projections of dropping earnings, increased insecurity, and decreased oil production at the time.

“However, recent growth in services and manufacturing has outpaced expectations, necessitating revisions to projections.”

It further stated that the manufacturing sector has improved, while telecoms, trade, transportation, and financial services have grown.

“The improved manufacturing performance was largely due to a base effect, as the sector contracted sharply in 2020.”

“By contrast, service growth was largely organic, albeit uneven: telecoms expanded robustly during the pandemic, while trade, transportation, and financial services also recovered, but professional services, accommodation and food services, and other services contracted,” the report continued.

Despite the revised estimates, the Nigerian economy is expected to grow more slowly, according to the research.

“However, despite the improved outlook, Nigeria’s GDP is expected to grow more slowly in comparison to emerging economies and oil-producing countries,” it said.