IMF LOWERS NIGERIA’S 2024 GROWTH FORECAST TO 2.9%

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The International Monetary Fund (IMF) has revised its 2024 growth forecast for Nigeria’s economy to 2.9%, a decrease from the previously projected 3.1%. This adjustment is attributed to weaker-than-expected economic activity during the first half of the year, as detailed in the IMF’s October 2024 World Economic Outlook (WEO) released amid the ongoing World Bank and IMF annual meetings.

While the 2024 forecast has been lowered, the IMF has slightly increased its projection for Nigeria’s economic growth in 2025 to 3.2%, up from 3.0% in the previous report.

In a broader context, the IMF also reduced its growth forecast for Sub-Saharan Africa to 3.6% for 2024, down from 3.7% in July, but raised the 2025 projection to 4.2%, compared to 4.1% earlier. The report attributes the regional downgrade largely to Nigeria’s underperformance, along with the ongoing conflict in South Sudan, which has led to a significant 26% contraction in its economy.

Globally, the IMF has kept its 2024 growth forecast steady at 3.2%, although it has slightly downgraded the 2025 forecast from 3.3% to 3.2%. The IMF notes that growth in Sub-Saharan Africa is expected to rebound as the negative effects of prior weather shocks diminish and supply constraints ease.

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