Nigeria’s economic future for 2024 has suffered a setback as the International Monetary Fund, (IMF) has reduced the country’s growth projection from 3.1% to 3.0%.
The global monetary body revealed the drop in the growth projection during its World Economic Outlook update for January 2024.
Recall the body in its 2023 projection had predicted Nigeria’s economic growth to decline from 3.3% in 2022, to 2.9% in 2023. The IMF had then predicted that Nigeria’s economy would improve with a growth of 3.1% in 2024.
The downturn in the IMF’s prediction which has been linked to the negative effects of the ravaging inflation, now places Niegria’s economic growth at 3.0% for 2024 and represents one percentage point below the growth forecast of 3.1 percent made in October 2023.
The body, however, has further predicted growth for Nigeria’s economy in 2025 affirming its 3.1% forecast.
The body also predicted growth for sub-Saharan Africa in its 2024 projection saying the region’s economy is expected to grow by 3.8%.
It said, “In sub-Saharan Africa, growth is projected to rise from an estimated 3.3% in 2023 to 3.8% in 2024 and 4.1% in 2025, as the negative effects of earlier weather shocks subside, and supply issues gradually improve.
“The downward revision for 2024 of 0.2 percentage point from October 2023 mainly reflects a weaker projection for South Africa on account of increasing logistical constraints, including those in the transportation sector, on economic activity.”
For the overall global economic growth, the IMF projected a 3.1% growth in 2024 and a 3.2% growth in 2025.
The IMF also advised on policy priorities for governments worldwide, adding that for countries to deliver a smooth landing amid the towering inflation across regions, the countries’ central banks should prioritise the need to ensure price stability.
“As inflation declines toward target levels across regions, the near-term priority for central banks is to deliver a smooth landing, neither lowering rates prematurely nor delaying such lowering too much.
“With inflation drivers and dynamics differing across economies, policy needs for ensuring price stability are increasingly differentiated,” it added.