The International Monetary Fund (IMF) has revised its 2024 growth forecast for Nigeria’s economy to 2.9%, attributing this adjustment to weaker-than-expected economic activity in the first half of the year.
This update was part of the IMF’s October 2024 World Economic Outlook (WEO), released during the ongoing annual meetings of the World Bank and IMF on October 22. The new forecast marks a 0.2 percentage point decrease from the 3.1% predicted in the July 2024 WEO. However, the IMF has slightly increased its growth projection for Nigeria in 2025 to 3.2%, up from 3.0% in the earlier report.
The IMF stated, “In sub-Saharan Africa, GDP growth is expected to rise from an estimated 3.6% in 2023 to 4.2% in 2025, as the effects of previous weather shocks diminish and supply constraints gradually ease.” The report highlighted that the downgrade for sub-Saharan Africa is largely due to slower growth in Nigeria, compounded by ongoing conflict in South Sudan, which has resulted in a significant 26% contraction in its economy.
On a global level, the IMF has kept its 2024 growth forecast steady at 3.2%, consistent with the July WEO.
