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.”
