Nigeria’s Economic Growth Forecast Boosted to 3.3% by IMF for 2024

The International Monetary Fund (IMF) has revised Nigeria’s economic growth forecast for 2024 upward from three per cent to 3.3 per cent, according to the IMF’s World Economic Outlook released during the ongoing 2024 Spring Meetings of the World Bank and IMF in Washington, United States.

This adjustment represents an increase of 0.3 percentage points compared to the previous growth forecast of 3.0 per cent published in January 2024.

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However, the IMF has taken a slightly more conservative stance for 2025, reducing Nigeria’s economic growth forecast to 3.0 per cent from the earlier projection of 3.1 per cent in January.

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In the broader Sub-Saharan Africa region, the IMF has maintained its economic growth forecast for 2024 at 3.8 per cent but has revised the 2025 forecast downward to 4.0 per cent from the previously projected 4.1 per cent.

Globally, the IMF has raised its growth forecast for 2024 to 3.2 per cent, up from the 3.1 per cent projected in the January 2024 World Economic Outlook.

The forecast for 2025 remains unchanged at 3.2 per cent.

The IMF’s report attributes global growth projections to factors such as restrictive monetary policies, withdrawal of fiscal support, and low underlying productivity growth, noting that the projected growth rates for 2024 and 2025 are below the historical average.

The report also outlines expectations for advanced economies to experience slight growth increases, particularly in the euro area, while emerging market and developing economies are expected to maintain stable growth through 2024 and 2025, with regional variations.

Specifically for sub-Saharan Africa, the IMF anticipates an increase in growth from an estimated 3.4 per cent in 2023 to 3.8 per cent in 2024 and further to 4.0 per cent in 2025, driven by reduced impact of weather shocks and improvements in supply issues.

The forecast adjustments reflect negative revisions for Angola offset by positive revisions for Nigeria.