Tuesday, September 16, 2025
23.4 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 Egypt, South Africa through Allianz Global Corporate & Specialty, Nigeria, Ghana, Kenya, Ivory Coast, Madagascar, Morocco, Senegal, Cameroon and Congo.

 

spot_img
spot_img

Hot this week

Designing the Future: Arc Christian Benimana, Prof Taibat Lawanson to Headline Ecobank Design and Build 2025

Ecobank Nigeria has announced that celebrated architect Arc. Christian...

Sovereign Trust Insurance Wins Enactus Catalyst Award

From L-R: Victor Akinfala, Head Partnerships & Special Projects,...

SEC DG: Commission Considering Gradual Implementation of ISSB Standards

The Director General of the Securities and Exchange Commission...

Universal Insurance MD/CEO, Jeff Duru, Bags CIBN Associate Membership

  Dr. Jeff Duru Managing Director/CEO Universal Insurance Plc The Managing Director/CEO of...

Sterling One Foundation CEO, Olapeju Ibekwe, Joins Board of UN Global Compact Network Nigeria Ahead of UNGA 80

    Olapeju Ibekwe, Chief Executive Officer of Sterling One Foundation,...

Topics

Linkage Assurance Names Daniel Braie Acting MD/CEO

The Board of Directors, Linkage Assurance Plc has named...

ATCON to FG: Step Down Communications Services Tax Bill

Mr. Olusola Teniola, President, Association of Telecommunications Companies of...

Headline Inflation Tops 18.3% in October 2016

The National Bureau of Statistics (NBS) released the inflation...

NDIC Chairperson, Ronke Sokefun Bags Legal Excellence Award

Chairman, NDIC Board of Directors, Ronke Sokefun (2nd left)...

NCC Debunks Allegation of Extending 5G Deadline When Only MTN Submitted Bid

The Nigerian Communications Commission (NCC), in the course...

Africa Could Record 4.2% Growth by Overcoming Power Sector Challenges

Sub-Saharan Africa should prioritise the development of its power...

African Aviation Sector to Lose 2m Jobs over COVID-19

    The International Air Transport Association has released new analysis...

InterswitchSPAK 4.0 Finalists Nudge for N7.5m University Scholarships

As the semifinals of the InterswitchSPAK National Science Competition...
spot_img

Related Articles

Popular Categories

spot_imgspot_img