The International Monetary Fund (IMF) has lowered Nigeria’s economic growth forecast for 2024 by 0.2 percentage points, now expecting a 3.1% growth instead of the previously projected 3.3%. This adjustment follows weaker-than-expected economic activity in Nigeria from January to March 2024.
In its latest global economic outlook report titled “Global Economy in a Sticky Spot,” published on Tuesday, the IMF explained the downgrade. “The forecast for growth in sub-Saharan Africa is revised downward, mainly as a result of a 0.2 percentage point downward revision to the growth outlook in Nigeria amid weaker-than-expected activity in the first quarter of this year,” the report stated.
The IMF also lowered its economic growth projections for Sub-Saharan Africa from 3.8% to 3.7% due to Nigeria’s reduced economic performance. Despite this, the IMF maintained its 3.0% growth forecast for Nigeria’s economy in 2025.
Related Stories
- IMF Issues Recommendations to Aid Nigeria’s Currency Recovery
- IMF Advises Nigerian Government to Remove Fuel Subsidy Benefiting the Rich
On a global scale, the IMF projects steady growth rates of 3.2% in 2024 and 3.3% in 2025, consistent with its earlier forecast in April. The report noted that “varied momentum in activity at the turn of the year has somewhat narrowed the output divergence across economies.”
Additionally, the IMF highlighted ongoing challenges with inflation, stating, “Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalisation.” The organization warned that the risks of inflation have increased, potentially leading to higher interest rates for a longer period.
The National Bureau of Statistics (NBS) recently reported that Nigeria’s Gross Domestic Product (GDP) fell to 2.9% in the first quarter of 2024, down from 3.46% in the fourth quarter of 2023.