Nigeria’s economic growth took a hit in the first quarter of 2023, as the Gross Domestic Product (GDP) growth dropped to 2.31 percent from 3.52 percent in the previous quarter of 2022.
The latest GDP figures released by the National Bureau of Statistics (NBS) revealed this downward trend, which was primarily attributed to the adverse effects of a cash crunch experienced during the quarter.
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The report states, “The first quarter of 2023 saw a real-term increase in Gross Domestic Product by 2.31 percent (year-on-year). This growth rate represents a decline from the 3.11 percent recorded in the first quarter of 2022 and 3.52 percent in the fourth quarter of 2022. The reduction in growth can be attributed to the negative impact of the cash crunch witnessed during the quarter.”
This decline falls slightly below the recent prediction made by KPMG, which projected a slower GDP growth rate of 3 percent for Nigeria in 2023.
The challenges associated with the naira redesign and the ongoing political transition were cited as key factors contributing to the anticipated sluggish growth.
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