THE International Monetary Fund’s (IMF) recent update raised Nigeria’s GDP growth prediction for 2024 to 3.3%.
This modification was reported in the IMF’s April World Economic Outlook, which was released today during the World Bank and IMF’s 2024 Spring Meetings in Washington, United States.
The upgraded forecast is 0.3 percentage points higher than the prior 3.0% growth prognosis in the IMF’s January 2024 World Economic Outlook.
However, the IMF has taken a more conservative position for 2025, lowering Nigeria’s economic growth prediction to 3.0 percent, a tiny fall from the 3.1% forecasted earlier in January.
Within the broader Sub-Saharan Africa region, the IMF has maintained its 3.8 percent economic growth prediction for 2024 but reduced the 2025 forecast to 4.0 percent from it’s initial 4.1 percent.
The global economic outlook also received a tiny boost, with the IMF raising its 2024 growth projection to 3.2%, up from 3.1% expected in the January 2024 World Economic Outlook. The projection for 2025 stays constant at 3.2%.
The IMF stated, “Global growth, estimated at 3.2 per cent 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 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 per cent, reflecting restrictive monetary policies and withdrawal of fiscal support, as well as low underlying productivity growth.
“The report further elaborates on the expected trends in various economies, “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.”
The IMF predicts that sub-Saharan Africa’s growth rate would rise from 3.4% in 2023 to 3.8% in 2024 and 4.0% in 2025.
This optimistic forecast is due to the reduced impact of prior weather shocks and ongoing improvements in supply issues.
The prediction for 2024 stays consistent with the January 2024 WEO update, as negative adjustments for Angola due to a contraction in the oil sector are largely balanced by positive revisions for Nigeria.
