The World Bank Group has revised its economic growth outlook for Nigeria in 2023 to 2.9%, down from its earlier projection of 3.3%. This revision is attributed to currency pressure, insecurity, and various challenges facing the country. The World Bank’s ‘Africa Pulse’ report also noted that Sub-Saharan Africa’s economic outlook remains bleak due to weak growth in the region’s largest economies, rising instability, and global economic uncertainty.
The report forecasts a deceleration of economic growth in Sub-Saharan Africa to 2.5% in 2023, down from 3.6% in 2022. Nigeria is expected to grow at 2.9% due to lower international prices and currency pressures affecting both oil and non-oil sectors. The report also highlighted increased conflict and violence in the region as factors weighing on economic activity.
Despite the gloomy outlook, the World Bank noted some positive developments, including a decline in inflation and improved fiscal balances in some African countries. However, the report emphasized the urgent need for job creation to harness the demographic dividend in the region.
It’s important to note that economic forecasts are subject to change based on various factors, including government policies, global economic conditions, and unforeseen events.