Home Business IMF Downgrade Nigeria’s 2024 Economic Growth Forecast to 3%
BusinessNews

IMF Downgrade Nigeria’s 2024 Economic Growth Forecast to 3%

446

The International Monetary Fund (IMF) has revised Nigeria’s economic growth projection for 2024, lowering it from 3.1% to 3%. This update was included in the IMF’s World Economic Outlook (WEO) for January 2024, titled ‘Moderating Inflation and Steady Growth Open Path to Soft Landing’.

Despite the slight downgrade for Nigeria, the IMF predicts a rebound to 3.1% growth in 2025. The report also adjusted its forecast for sub-Saharan Africa economic growth, decreasing from an earlier prediction of 4% to 3.8% in 2024, followed by a rise to 4.1% in 2025. This adjustment is largely due to South Africa’s economic challenges, including logistical constraints in its transportation sector.

Globally, the IMF’s outlook is slightly more optimistic, with a 0.2 percentage increase to 3.1% growth in 2024, and a modest rise to 3.2% in 2025. This adjustment reflects improvement in economies like China, the United States, and other large emerging markets. However, this global growth projection remained below the historical annual average of 3.8% from 2000 to 2019.

The report indicated that advanced economies may experience a decline in growth in 2024 before recovering in 2025. In contrast, emerging markets and developing economies are expected to maintain a steady growth rate around 4.1% in 2024 and 4.2% in 2025.

Regarding inflation, the IMF expects a global reduction from an estimated 6.8% in 2023 to 5.8% in 2024, and further down to 4.4% in 2025. Advanced economies are likely to see a quicker decrease in inflation rates compared to emerging markets and developing economies.

The IMF emphasised the need for differentiated monetary policies across regions due to varying inflation dynamics and economic conditions. It also highlighted the importance of fiscal consolidation in the current economic climate, advocating for supply-enhancing reforms to support inflation and debt reduction while improving living standards.

Read more: Grammy Stars to Receive Exclusive Gift Bags from Distinctive Assets

About The Author

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

President Bola Tinubu is set to leave Abuja on Monday for a brief working visit to France, according to a statement issued by Ajuri Ngelale, the presidential spokesperson.
NewsPolitics

President Tinubu and VP Shettima Leave Official Duties, Depart for France and Senegal

President Bola Tinubu and Vice President Kashim Shettima have departed Nigeria on...

News

DR Congo: M23 Rebels Withdraw from Walikale Ahead of Peace Talks  

M23 rebels have withdrawn from Walikale, an important town in the eastern...

National Grid collapses
News

Despite Grid Collapses in the Last 2 Years, Minister of Power, Adelabu Claims 2,000MW Increase in Generation

Despite recurring national grid collapses in the past two years, the Minister...

News

Russia Backs Joint CSS Military Force, Foreign Minister Hails “Africa’s Second Awakening”

Russia has pledged to assist in forming a joint CSS military force,...