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Nigeria’s Gross Domestic Product (GDP) registered a low real growth rate of 3.10% in 2022 due to the country’s low agricultural and manufacturing productivity. Real GDP growth in 2021 was 3.40%.
Economic output started very optimistically with real GDP growth of 3.11% at the end of the first quarter of2022 and3.54% in the second quarter, but projections for the other half of 2022 are in line with the first half.must. This year’s.
However, as GDP growth slowed to 2.25% in the third quarter, productivity fell to 3.52% at the end of thefourth quarterof 2022, putting annual real growth at 3.10%. % reached.
Annual productivity data from the National Bureau of Statistics show economic growth has slowed in the agricultural sector, with annual real growth in 2022 falling to 1.88% from his 2.13% in 2021. The cropproduction sub-sector sawlower growth of 2.01% in 2022 compared to 2.27% in 2021. This is the subsectorwhere most of the country’s agriculturalsector productivity occurs. Also, the productivity of the fisheriessub-sector has fallen from 1.16% in 2021 to 0.47% in2022.
Meanwhile , the productivity of the livestock and forestry sub-sectors was 0.61% and 1.62% for the full year2022, higher than 0.58% and 1.43% for 2021. Only in 2021, their contribution to the country’s agriculturalsector will be marginalcompared to crop production, which explains why growth in these subsectors hasfailed to boost the agricultural sector as awhole.
The agricultural sector contributed a quarter of Nigeria’s GDP in 2022. The decline in productivity in 2022was attributedto severe flooding that affected nearly every state in Nigeria.
“Massive flooding has occurred across Nigeria, the number of people affected has surpassed her 3.2million, killing morethan 600. More than 1.4 million have been displaced. Of the 36 states he has affected,34.
“More than 569,000 hectares of farmland could be destroyed or damaged by floods ahead of the October harvest seasons, exacerbating already alarming food insecurity,” the relief network said. Manufacturing growth in 2022 is lower than in2021, and some key sub sector saw lower productivity in 2022 compared to2021. Manufacturing contributed to his19.02% of the country’s GDP in 2022.
In terms of real growth, real GDP growth registered 2.35% in 2022 compared to 3.35% in 2021. It grew by5.65% in 2022compared to 6.64%.The sector grew by 3.86% in 2022 compared to 5.73% in 2021.
The petroleum refining subsector is still inrecession, and he is one of his three refineries in the country,some of which areunder repair and have halted production. Activity in this subsector fell by 41.93% forthe full year 2022. In 2021, hisproductivity dropped by 47.94%.
Other manufacturing subsectors that saw productivity fall were textiles, clothing and footwear, which fell by-2.23% in2022, compared to -1.27% in 2021, and pulp, paper, and paper products, which fell by -1.47% in2022. -0.32% in 2021.
Manufacturing has been rocked by ongoing rate hikes in 2022. CBN has raised its reference rate, theMonetary Policy Rate(MPR), to 16.6% from 11.5% at the beginning of the year in an effort to keep inflation in check.