Growth in Nigeria, South Africa, Angola dropped to 2.6 percent in 2022, says World Bank

• Published date: 10 January 2023
• Publication title: Nigeria - The Nation

The growth in Sub-Saharan Africa's three largest economies-Angola, Nigeria, and South Africa-dropped sharply to 2.6 percent in 2022, the World Bank has said in its Global Economic Prospects.

The bank, in the report released on Tuesday in Washington DC, said growth in Nigeria weakened as production challenges in the oil sector intensified.

'Annual inflation in Nigeria exceeded 21 percent last year-its highest level in 17 years, prompting more policy tightening. Food affordability for vulnerable populations deteriorated further amid disruptions to farming and sizable population displacement because of recent devastating floods,' the report said.

World Bank Group President David Malpass said the crisis facing development was intensifying as the global growth outlook deteriorates.

'Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment as global capital is absorbed by advanced economies faced with extremely high government debt levels and rising interest rates. Weakness in growth and business investment will compound the already-devastating reversals in education, health, poverty, and infrastructure and the increasing demands from climate change.'

According to the report, South Africa's economy grew by only 1.9 percent as electricity shortages worsened.

On Angola, it said: 'Policy uncertainty, flagging external demand, and disruption due to floods and strikes weighed on growth. High oil prices and stable oil production supported a 3.1 percent rebound in Angola.'

The report added that food price pressures have intensified in Sub-Saharan Africa because of adverse weather shocks, supply disruptions worsened by Russia's invasion of Ukraine, increased fragility and insecurity.

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'Annual food price inflation exceeded 20 percent in over a quarter of all countries last year, dampening growth in real income and consumer demand, and deepening food insecurity,' said the report.

It went on: 'A substantial deceleration in global growth and falling non-energy commodity prices have weighed on economic activity across SSA, particularly in metal exporters. Despite a recent easing of global food and energy prices, import costs remained elevated, contributing to widening current account deficits. Pandemic-induced weakness in fiscal positions lingered, with the government debt surpassing 60 percent of GDP in almost half of SSA economies last year. Debt...