Nigeria’s real GDP per capita to grow at 0.35% in 2023 – IMF
The World Economic Outlook October Edition report from the International Monetary Fund (IMF) projects that Nigeria’s real GDP growth would decrease to 2.87% in 2023 from 3.25% in 2022. Real GDP growth outside of oil is expected to be 2.96% in 2022, down from 4.98% in 2022.
Similar to real GDP and non-oil real GDP, the real per capita GDP growth estimate for 2023 is expected to be less than that of the year before. Real GDP per capita is expected to be 0.35 percent in 2023, half that of 0.71% in 2022. Due to poor productivity and rapid population expansion, the per capita growth rate is low, which is below the ideal growth rate.
A number of issues, such as Nigeria’s weak currency, erratic and irregular macroeconomic policies, and inadequate infrastructure development, can be blamed for the country’s low productivity. Nigeria must expand its real GDP by at least 5% over an extended period of time in order to enjoy a significant increase in per capita income that would propel the nation from a low- to an upper-middle-income status.
A GDP growth rate in the double digits, similar to what China has seen, would accelerate income growth and quickly pull millions more Nigerians out of poverty. The government must fortify current foreign exchange market reforms in the meantime. Both domestic and foreign investors are being negatively impacted by the current market irregularity.
A consistent and dependable supply of electricity is also essential to meeting the development rate. In order to solve the liquidity concerns that have hindered the sector’s ability to draw in new investment necessary to both build and enhance existing transmission and generating channels, the government must collaborate with pertinent players. The budget for 2024 should be developed in a way that communicates the government’s determined efforts to prioritize capital spending in order to increase productivity.
