IMF downgrades Nigeria’s economic growth in 2024

The International Monetary Fund (IMF) has reduced its forecast for Nigeria’s economic growth to 3 per cent in 2024 — down from a 3.1 per cent projected in October 2023.

This is contained in the institution’s World Economic Outlook (WEO) update for January 2024.

The outlook, released on Tuesday, is titled, ‘Moderating Inflation and Steady Growth Open Path to Soft Landing’.

IMF also projected a 3.1 per cent economic growth for Nigeria in 2025.

IMF said: “Compared with that in the October 2023 WEO, the forecast for 2024 is about 0.2 percentage points higher, reflecting upgrades for China, the United States, and large emerging markets and developing economies.”

“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 decline slightly in 2024 before rising in 2025, with a recovery in the euro area from low growth in 2023 and a moderation of growth in the  United States. 

“In emerging market and developing economies, growth is expected to remain at 4.1 percent in 2024 and to rise to 4.2 percent in 2025. 

“An upward revision of 0.1 percentage point for 2024 since October 2023 reflects upgrades for several regions.”