The International Monetary Fund (IMF) has revised its economic growth forecast for Nigeria downward to 3.1% for 2024, citing weaker-than-expected performance in the first quarter of the year. This adjustment represents a reduction of 0.2 percentage points from its earlier projection of 3.3%.
According to the IMF’s July 2024 World Economic Outlook report, Nigeria’s Gross Domestic Product (GDP) growth in Q1’24 fell to 2.98% from 3.46% in the previous quarter, contributing to the downgrade. Despite the downgrade for this year, the IMF maintained its forecast of 3.0% economic growth for Nigeria in 2025.
The IMF’s revision also affected its outlook for Sub-Saharan Africa, reducing the growth forecast for the region to 3.7% from the earlier projection of 3.8% for 2024. However, it raised the forecast for 2025 to 4.1% from 4.0%, indicating cautious optimism about the region’s economic prospects.
Global economic growth projections remain unchanged at 3.2% for 2024 and 3.3% for 2025, despite varying momentum across economies and persistent challenges such as inflationary pressures and policy uncertainties.
In Nigeria, the recent inflation rate climbed to 34.19% in June 2024, reflecting a 0.24% increase from May 2024, exacerbating economic challenges. The rise in food prices, including essential items like oils, tubers, and fish, has further intensified economic pressures, prompting government interventions such as tariff suspensions and agricultural equipment procurements to mitigate food crises.
Experts attribute the economic struggles to ongoing security issues, inadequate infrastructure, and other systemic challenges hampering food production and economic stability in Nigeria.
