April 17, 2024

IMF raises forecast for Nigeria’s economic growth to 3.3%

The new forecast was contained in the IMF World Economic Outlook April, released on the sidelines of the ongoing 2024 Spring Meetings of the World Bank and IMF in Washington, United States.

The latest forecast represents 0.3 percentage points higher than the 3.0 percent forecast contained in the January 2024 World Economic Outlook by the IMF.

However, the IMF reduced its forecast for Nigeria’s 2025 economic growth to 3.0 per cent from the 3.1 percent projected in January 2024.

For the Sub-Saharan Africa region, while the IMF retained its 3.8 percent forecast for economic growth in 2024, it reduced its forecast for 2025 to 4.0 percent, down from the 4.1 per cent projected in January 2024.

For the global economy, the IMF raised its growth forecast for 2024 to 3.2 per cent, up from 3.1 percent projected in the January 2024 WEO, while it retained its 3.2 percent forecast for 2025.

The IMF said: “Global growth, estimated at 3.2 percent in 2023, is projected to continue at the same pace in 2024 and 2025. The projection for 2024 is revised up by 0.1 percentage point from the January 2024 WEO Update and by 0.3 percentage point with respect to the October 2023 WEO forecast. Nevertheless, the projection for global growth in 2024 and 2025 is below the historical (2000–19) annual average of 3.8 percent, reflecting restrictive monetary policies and withdrawal of fiscal support, as well as low underlying productivity growth.

“Advanced economies are expected to see growth rise slightly, with the increase mainly reflecting a recovery in the euro area from low growth in 2023, whereas emerging market and developing economies are expected to experience stable growth through 2024 and 2025, with regional differences.

“In sub-Saharan Africa, growth is projected to rise from an estimated 3.4 percent in 2023 to 3.8 percent in 2024 and 4.0 percent in 2025, as the negative effects of earlier weather shocks subside and supply issues gradually improve. The forecast is unchanged for 2024 from the January 2024 WEO Update, as a downward revision to Angola owing to a contraction in the oil sector is broadly offset by an upward revision to Nigeria.”