According to the International Monetary Fund, actions taken to alleviate insecurity in the oil sector will cause Nigeria’s economy to increase from 3.0 percent in 2022 to 3.2 percent in 2023. According to the report, growth in sub-Saharan Africa would slow to 3.8% in 2023 due to the long-lasting effects of the COVID-19 epidemic.
The GDP of South Africa will contract from 2.6% in 2022 to 1.2% in 2023. According to the report, “In sub-Saharan Africa, growth is predicted to remain moderate at 3.8 percent in 2023 amid ongoing COVID-19 pandemic effects, although with a minor upward adjustment since October, before rising up to 4.1 percent in 2024.”
Nigeria’s expanding economy is reflected in the slight (0.1 percentage point) upward revision for 2023. “The Washington-based lender explained that growth in the global economy will slow down in 2023 before bouncing back in 2024. This is as the global fight against inflation and Russia’s war in Ukraine weigh on activity.
Growth is forecasted to slow from 3.4 per cent in 2022 to 2.9 per cent in 2023, then rebound to 3.1 per cent in 2024. According to the money lender, its January forecast is a lot less gloomy than its October forecast and could hint at a turning point, with growth bottoming out and inflation declining.