Analysis by Region - Emerging Markets - Nigeria

Analysis by Region - Emerging Markets - Nigeria

Economic growth remained subdued throughout H1 2023, with total economic output at constant market prices rising by 2.6% y/y in Q2, up slightly from 2.4% y/y in Q1. Activity in the non-oil economy recovered notably from the Q1 currency crisis, with services, manufacturing, and agricultural output rising markedly in Q2. The hydrocarbon sector dropped deeper into contractionary territory due to declining oil output, which further weakened industrial production. Rising inflation, elevated policy uncertainty, and weak oil output are expected to stifle economic activity and reduce real GDP growth to 2.5% in 2023 from 3.3% in 2022.