JP Morgan Says Nigeria’s Economy Likely To Grow By 1.5% In 2021
JP Morgan, a global financial institution has said Nigeria’s economy is expected to grow less than analysts estimate, projecting Africa’s largest economy to only grow by 1.5 per cent this year.
This was disclosed by JPMorgan Chase Bank NA analysts including Gbolahan Taiwo and Ayomide Mejabi in an email reported by Bloomberg on Wednesday.
The report stated JP Morgan said Nigeria’s economy is likely to expand by 1.5 per cent in 2021.
They added that the “continued lack of foreign-exchange liquidity, underlying economic weakness, an emerging third wave of Covid-19 infections and a slow rollout of vaccines will likely slow the recovery process.”
JP Morgan’s estimates are lower than International Monetary Fund, IMF’s forecast.
This was disclosed by JPMorgan Chase Bank NA analysts including Gbolahan Taiwo and Ayomide Mejabi in an email reported by Bloomberg on Wednesday.
The report stated JP Morgan said Nigeria’s economy is likely to expand by 1.5 per cent in 2021.
They added that the “continued lack of foreign-exchange liquidity, underlying economic weakness, an emerging third wave of Covid-19 infections and a slow rollout of vaccines will likely slow the recovery process.”
JP Morgan’s estimates are lower than International Monetary Fund, IMF’s forecast.
The IMF lifted its global growth outlook to 6 per cent in 2021 (0.5 per cent point upgrade) and 4.4 per cent in 2022 (0.2 percentage point upgrade), after an estimated historic contraction of -3.3 per cent in 2020 due to the effects of the COVID-19 pandemic, citing that Nigeria is expected to grow by 2.5 per cent in 2021 and 2.3 per cent by 2022, while South Africa is projected to hit growths of 3.1 per cent and 2.0 per cent for the respective years in focus.
In July, the Federal Government forecasted that the Nigerian economy will grow by as much as 4.2 per cent in 2022. This was disclosed by Mrs. Zainab Ahmed, Minister of Finance, Budget and National Planning, at the Public Consultation on the Draft 2022 to 2024 Medium Term Fiscal Framework and Fiscal Strategy Paper.
In July, the Federal Government forecasted that the Nigerian economy will grow by as much as 4.2 per cent in 2022. This was disclosed by Mrs. Zainab Ahmed, Minister of Finance, Budget and National Planning, at the Public Consultation on the Draft 2022 to 2024 Medium Term Fiscal Framework and Fiscal Strategy Paper.
“Inflation rate, which was planned for 11.95 per cent in 2021, has been reflected in reality because the exchange rate is high. The average we have so far is 15 per cent.
We are expecting 2022 to go down slightly to 13 per cent, then 11 per cent in 2023, and 10 per cent in 2024.
We are expecting 2022 to go down slightly to 13 per cent, then 11 per cent in 2023, and 10 per cent in 2024.
The exchange rate of the Naira to the dollar, which was N379 in the 2021 budget, has been adjusted to the NAFEX rate of N410.15 to one US dollar.
We are assuming, for now, the same rate for 2022, 2023, and 2024,” she said.
Meanwhile, Nigeria’s Gross Domestic Product (GDP) grew by 5.01 per cent (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.
Year to date, real GDP grew 2.70 per cent in 2021 compared to -2.18 per cent for the first half of 2020. Nevertheless, quarter on quarter, real GDP grew at -0.79 per cent in Q2 2021 compared to Q1 2021.
We are assuming, for now, the same rate for 2022, 2023, and 2024,” she said.
Meanwhile, Nigeria’s Gross Domestic Product (GDP) grew by 5.01 per cent (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.
Year to date, real GDP grew 2.70 per cent in 2021 compared to -2.18 per cent for the first half of 2020. Nevertheless, quarter on quarter, real GDP grew at -0.79 per cent in Q2 2021 compared to Q1 2021.
