Nigeria : UN Projects 3% Economic Growth For Nigeria
on 2023/1/30 13:10:39

Click to see original Image in a new window
The United Nations has said the Nigerian economy will grow to three per cent in 2023 because of a robust commodities trade and dynamic consumer goods and services markets.

It stated that high inflation and power supply issues are affecting economic growth in the country. It disclosed this in its ‘The World Economic Situation and Prospects 2023’ report.

The report was produced by the United Nations Department of Economic and Social Affairs, in partnership with the United Nations Conference on Trade and Development and the five United Nations regional commissions: Economic Commission for Africa, Economic Commission for Europe, Economic Commission for Latin America and the Caribbean, Economic and Social Commission for Asia and the Pacific and Economic and Social Commission for Western Asia.

It said, “High inflation and power supply issues are impacting growth in Nigeria, but the economy will benefit from robust commodities trade and dynamic consumer goods and services markets, bringing growth to three per cent in 2023.”

The UN projects that aggregate economic growth will weaken to 3.8 per cent in 2023 from 4.1 per cent in 2022 in Africa due to subdued investment and deteriorating export volumes.

It stated that price levels that rose significantly in Africa because of a global pickup in inflation in 2022 are projected to moderate in 2023. According to the agency, the share of African countries experiencing double-digit inflation increased to 40 per cent in 2022 because of supply chain disruptions and the fallout from the war in Ukraine, which made essential food and energy items more expensive.

It said, “To combat inflation and exchange rate pressure, about two-thirds of African countries increased domestic policy interest rates in 2022. Most countries will likely further increase rates in 2023 in parallel with the projected monetary stance of the Federal Reserve in the United States and the European Central Bank.”

According to the New York-headquartered agency, fiscal positions across Africa have deteriorated as governments sought to protect lives and livelihoods during the pandemic with average public debt rising to over 60 per cent of GDP and likely to remain as such in 2023.

It further revealed that African countries will struggle with principal repayment of about $11bn on Eurobonds by 2024 because of weaker currencies.

It said, “Although some large African economies have lower levels of public debt on average, they will continue to see high and rising debt-servicing costs.

“Given higher interest rates, weaker currencies against the dollar and lower capital inflows, a number of African countries will face challenges in servicing and rolling over a large volume of debt, especially in 2024, when principal repayment of about $11bn on Eurobonds will be due.

“Eurobond issuance has become harder for African governments, and yields in secondary markets have increased substantially, pointing to rising borrowing costs in the future.”

With 17 African countries set for presidential and parliamentary elections, the UN added that rising popular dissatisfaction in many countries, driven by worsening socioeconomic conditions, including subdued wage growth, the escalating cost of living, and food security concerns, could prove challenging for incumbent or new administrations.

Earlier in January, the World Bank revealed that the Nigerian economy would grow at 2.9 per cent in its Global Economic Prospects report.

Recently, the Minister of Finance, Budget and National Planning, Zainab Ahmed disclosed that the country was not planning to explore the bonds market in 2023 because of an unfavourable market.

She said, “In 2023, we are not in the bond market. If we are able to get back to the rates of early 2021, then we can consider going back to the bond market. But we are consistently monitoring the bond market, we are monitoring the performance of our bonds, and when it gets to that comfortable level, we will explore it.”

Previous article - Next article Printer Friendly Page Send this Story to a Friend Create a PDF from the article

Other articles
2023/7/22 15:36:35 - Uncertainty looms as negotiations on the US-Kenya trade agreement proceeds without a timetable
2023/7/22 13:48:23 - 40 More Countries Want to Join BRICS, Says South Africa
2023/7/18 13:25:04 - South Africa’s Putin problem just got a lot more messy
2023/7/18 13:17:58 - Too Much Noise Over Russia’s Influence In Africa – OpEd
2023/7/18 11:15:08 - Lagos now most expensive state in Nigeria
2023/7/18 10:43:40 - Nigeria Customs Intercepts Arms, Ammunition From US
2023/7/17 16:07:56 - Minister Eli Cohen: Nairobi visit has regional and strategic importance
2023/7/17 16:01:56 - Ruto Outlines Roadmap for Africa to Rival First World Countries
2023/7/17 15:47:30 - African heads of state arrive in Kenya for key meeting
2023/7/12 15:51:54 - Kenya, Iran sign five MoUs as Ruto rolls out red carpet for Raisi
2023/7/12 15:46:35 - Ambassador-at-Large for Global Women’s Issues Gupta Travels to Kenya and Rwanda
2023/7/2 14:57:52 - We Will Protect Water Catchments
2023/7/2 14:53:49 - Kenya records slight improvement in global peace ranking
2023/7/2 13:33:37 - South Sudan, South Africa forge joint efforts for peace in Sudan
2023/7/2 12:08:02 - Tinubu Ready To Assume Leadership Role In Africa
2023/7/2 10:50:34 - CDP ranks Nigeria, others low in zero-emission race
2023/6/19 15:30:00 - South Africa's Ramaphosa tells Putin Ukraine war must end
2023/6/17 15:30:20 - World Bank approves Sh45bn for Kenya Urban Programme
2023/6/17 15:25:47 - Sudan's military govt rejects Kenyan President Ruto as chief peace negotiatorThe Sudanese military government of Abdel Fattah al-Burhan has rejected Kenyan President William Ruto's leadership of the "Troika on Sudan."
2023/6/17 15:21:15 - Kenya Sells Record 2.2m Tonnes of Carbon Credits to Saudi Firms

The comments are owned by the author. We aren't responsible for their content.