In its most recent world economic outlook estimates, the International Monetary Fund predicted that Nigeria’s economy will increase by 3.4 percent in 2022.
It predicted that the country will grow at 3.1 percent in 2023, down from 3.4 percent in 2022 and 3.6 percent in 2021.
Nigeria’s economic forecast is lower than that of the Sub-Saharan African region, which is forecast to increase at a rate of 4.5 percent in 2021, 3.8 percent in 2022, and 4.0 percent in 2023.
As a result of the war in Ukraine and Russian sanctions, the global economy is likely to rise by 3.6 percent in 2022 and 2023, according to the Washington-based lender.
“We have lowered our expectation for global growth downwards to 3.6 percent in both 2022 and 2023, compared to our January forecast,” it stated. This reflects the war’s immediate impact on Ukraine and the sanctions’ impact on Russia, with both nations expected to see significant contractions.
Due to the indirect consequences of the conflict, the European Union’s growth forecast has been lowered downward by 1.1 percentage points this year, making it the second-largest contribution to the total downward revision.”
According to the International Monetary Fund, the war would hinder economic development and raise inflation.
