Improved vaccination will boost Nigeria’s GDP growth by 3%, CBN predicts

The Central Bank of Nigeria (CBN) has predicted that Nigeria’s GDP will grow by 3 percent by the end of 2021 if there is improved vaccination and no new health hazards that will lead to lockdown.

The Director of Monetary Policy Department at CBN, Dr Hassan Mahmud, made this prediction on Friday at the virtual mid-year economic review and outlook 2021 held in Abuja.

According to him, if certain things were in place, the country would record some positive economic figures in 2021 and early 2022.

Mahmud said, “Also if the CBN forecasts for GDP growth are sustained and there is improved vaccination and the health hazards and lockdowns are not resurfacing, we will see GDP getting close to three percent by the end of 2021.

The director also predicted improved inflation from double-digit to single-digit by next year if there is a full implementation of its recent policies designed to boost different sectors of the economy.

He said even though there are challenges such as insecurity, exchange rate market pressure, declining capital inflows, high debt service payments and rising fiscal deficits, the CBN projected speedy economic recovery.

Mahmud added, “We will also see the inflation number coming down less than 13 percent by the end of the year and further down to the NBS projection of single-digit by 2022 or the middle of 2022.

“We will start seeing a downward trend in inflation numbers, particularly, headline inflation.”

According to Mahmud, there will be a drop in food inflation, if an effective supply system is maintained and security issues mitigated.

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