Saturday, July 5, 2025
23.9 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
spot_img

Hot this week

MTN, 9mobile Ink National Infrastructure Partnership Deal

L-R: Abolaji Idowu, Chief Financial Officer, 9mobile; Omotola Ojutayo,...

Stanbic IBTC Holding’s N148bn Rights Issue Oversubscribed by 21.9%, Injects N140bn into Stanbic IBTC Bank

Acting Group CE Statement Commenting on the just concluded rights...

NAICOM Hands over New Licences to SanlamAllianz Life, General Insurance

The National Insurance Commission (NAICOM) today handed over new...

Access Bank Highlights Leadership at Climate Governance Initiative Launch

Access Bank Plc has once again demonstrated its leadership...

Fidelity Bank Extends Relief Efforts to Eti-Osa Community with Food Bank Initiative

Henry Asiegbu, Divisional Head, Operations, Fidelity Bank Plc (Left);...

Topics

REX Insurance Unveils New Brand Identity, Commissions Head Office

REX Insurance Limited has officially unveiled its new corporate...

Emirates Denies Allegation of Flight Suspension from Nigeria

The UAE government continues to advance its dialogue with...

Unity Bank Posts N27B Gross Earnings in H1’22, Records 23% Growth in PAT

From left: Dr Oluwafunsho Obasanjo, Non-Executive Director; Mr. Alaba...

AfDB Funds Platform to Support Women Empowerment in 36 African Countries

On 15th of July 2016, the African Development Bank...

Digital Corporate Communications, PR, Public Affairs MasterClass for March 14

The West Africa Business School has announced the 2017...

Beyond Tinubu’s Second Bombshell in Abeokuta

  By Haniel Ukpaukure There is something about Abeokuta, the Ogun...

Standard Bank Group Names Yinka Sanni as New CEO for Africa

Yinka Sanni Standard Bank Group, Africa’s largest bank by assets,...
spot_img

Related Articles

Popular Categories

spot_imgspot_img