Monday, September 8, 2025
24.5 C
Lagos

Allianz Report: Nigeria to Register 2.3% Economic Growth in 2022

After being the slowest growing region in 2021, Africa will register mild growth in 2022 (+3.5%) as vaccination rates will remain very low (32% in the overall continent but only 4% in Sub-Saharan Africa) according to the Allianz Economic Outlook report: Don’t Look Up.

GDP growth expectations in countries are as follows: Senegal (6.1%), Kenya (5.6%), Ivory Coast (5.5%), Ghana (5.4%), Egypt (4.6%), Mozambique (4.6%), Namibia (3.7%), Morocco (3.3%), Tunisia (3.2%), Gabon (3.2%), Algeria (2.4%), Nigeria (2.3%), Angola (2.2%) and South Africa (2.0%).

In 2022, oil exporters such as Angola and Algeria will continue to benefit from the commodity upcycle tailwind. On the other hand, amid rapidly rising inflation to double digits in most countries, monetary policy rates are expected to increase in Kenya, Nigeria, Ghana, South Africa and Egypt. In an environment of continued sanitary uncertainty, this monetary tightening is expected to put a brake on growth.

In addition to rising energy prices, food inflation has soared to hardly bearable levels in Angola, Ethiopia, Nigeria and Ghana. The food security situation is likely to deteriorate in 2022 in southern and eastern Ethiopia, Kenya and Somalia as a result of adverse climate events. The deteriorating security situation in Ethiopia entails significant risk of spillovers to the region, including migration flows to the Kenyan border. Tunisia, Ghana, Mozambique, Kenya and South Africa are hot spots regarding debt sustainability. Tunisia, Morocco, Egypt and Burkina Faso will see current account deficits only improve slightly in 2022 after deteriorating in 2021.

Global growth should remain robust but uneven, with rising divergence between advanced and emerging market economies. Our 2022 GDP forecast remains broadly unchanged, with the Eurozone and the US expected to grow by +4.1% and +3.9%, respectively, while growth in China slows to +5.2% due to ongoing disruptions in the real estate sector and the government’s focus on financial stability.

China’s lowest contribution to global GDP growth since 2015 is likely to have negative spillover effects on emerging markets whose recovery will be shallower compared to past crises.

Global trade is expanding once again above the long-term average but will be disrupted by labor and supply chain bottlenecks, amplified by omicron. We expect global trade in volume to grow by +5.4% in 2022 and +4.0% in 2023.

Allianz has been operating in Africa since 1912 in the following countries EgyptSouth Africa through Allianz Global Corporate & SpecialtyNigeriaGhana, KenyaIvory CoastMadagascarMoroccoSenegal, Cameroon and Congo.

 

spot_img
spot_img

Hot this week

Nigeria, Brazil Central Banks Deepen Economic, Financial Co-operation

Nigeria’s Central Bank Governor, Olayemi Cardoso, has held talks...

Ecobank Nigeria to Host Second Edition of Design & Build, Showcasing Premier Innovators in Design, Construction

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

Expert: Fintech, Financial Inclusion Critical for Sustainable Growth of Nigerian Economy

A renowned economist, Dr. Biodun Adedipe, the Chief Consultant/CEO,...

Sterling Bank Marks One Year of Africa’s Groundbreaking Core Banking System

Number one Best Workplace in Banking in Nigeria and...

Topics

Ecobank Mobile App Handles $1bn Transactions in 18 Months

The groundbreaking Ecobank Mobile App, a single, unified financial...

NCC Advances Cybersecurity Framework to Safeguard Nigeria’s Telecom Infrastructure

L-R: President, International Youth Parliament, Hon. Promise Digos; Chief...

UNESCO, African ICT Foundation to Host West-Africa Internet Governance Forum May 26

Tony Ojobo President African ICT Foundation UNESCO and the African ICT Foundation...

Effective Judicial System Will Assist Nigerian Economy – Amb. Rimi

AMCON MD/CEO, Ahmed Kuru (left); Nigerian Ambassador to Egypt,...

Stanbic IBTC Bank Nigeria PMI: Private Sector Growth Quickens in April

Marked and accelerated expansions in output and new orders...

Global Smartphone Shipments Decline 3% in Q1 2016

According to the latest research from Strategy Analytics, global...

PenCom: Why Micro Pension Adoption is Slow in Nigeria

Mr. Dauda Ahmed, Head of Micro Pension at the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img