Global banking giant, JP Morgan has project a 1.5% growth for Nigeria’s economy this year.
This is lower than estimates by other analysts.
According to a report by Bloomberg, this was disclosed by JP Morgan Chase Bank NA analysts including Gbolahan Taiwo and Ayomide Mejabi.
The report stated that JP Morgan said Nigeria’s economy is likely to expand by 1.5% in 2021.
They added that the “continued lack of foreign-exchange liquidity, underlying economic weakness, an emerging third wave of Covid-19 infections and a slow rollout of vaccines will likely slow the recovery process.”
JP Morgan’s estimates are lower than IMF’s forecast in April. The International Monetary Fund lifted its global growth outlook to 6 per cent in 2021, representing a 0.5 per cent point upgrade and 4.4 per cent in 2022, representing a 0.2 per cent upgrade, after an estimated historic contraction of -3.3 per cent in 2020 due to the effects of the COVID-19 pandemic.
The IMF had forecasted that Nigeria is expected to grow by 2.5 per cent in 2021 and 2.3 per cent by 2022, while South Africa is projected to hit growths of 3.1 per cent and 2.0 per cent for the respective years in focus.
The Nigerian government on its part had in July, projected that the economy will grow by as much as 4.2 per cent in 2022.
