Dear Subscriber,

Is Nigeria on the mend with GDP at 3.1%?

In line with analysts’ expectations, Nigeria’s economy grew by 3.1% in 2022. The IMF had forecast a growth rate of 3.2%, while FDC projected a growth of 3.01%. Interestingly, at 3%, GDP outpaced the population growth rate of 2.6%, suggesting a possible increase in GDP per capita in the near term.

Quarterly, the real GDP increased by 3.52% in Q4’22, up from 2.25% in Q3’22. The uptick in Q4 was spurred by the typical festive season increase in economic activities and an expansion in the service sector to 5.69%, contributing 56.27% to the aggregate GDP.

Of the 46 activities tracked by the NBS, 17 expanded, 11 contracted, and 18 slowed compared to 26, 10, and 10, respectively, in Q3’22.

Noteworthy is that compared to previous quarters, the sectors which expanded in Q4’22 are job elastic, indicating a possible rise in employment opportunities in the coming quarters, barring any post-election upheaval. For example, the manufacturing sector grew by 2.28%, higher than the previous quarter by 4.74%.

Ultimately, the slowdown in GDP growth relative to 2021 and the recent upsurge in inflation (21.8%) will be the main considerations at the next MPC meeting in March 2023.

In the download, the FDC Think-Tank breaks down the GDP numbers for Q4’22, analyzing its implications on your business, wallets, and the overall economy.

Enjoy your read …