IMF Predicts Nigeria’s Economic Growth to Slow Down in 2024

The International Monetary Fund (IMF) has projected that Nigeria’s economic growth will decline from 3.2 percent in 2023 to 3.0 percent in 2024.

The IMF retained Nigeria’s 3.2 percent economic growth projection for 2023 in its recent world economic outlook update.

In its ‘World Economic Outlook: A Rocky Recovery (2023 Apr)’ report, released on Tuesday, the IMF improved the country’s 2024 economic growth projection to 3.0 percent from the 2.9 percent it had earlier stated in its January update. The report also indicated that Nigeria’s economy grew by 3.3 percent in 2022.

The IMF noted that the economic prospect of emerging markets and developing economies is on average stronger than those of advanced economies, although these prospects vary.

The Washington-based lender projected that on average, growth is expected to be 3.9 percent in 2023 and rise to 4.2 percent in 2024.

However, the IMF cautioned that debt levels remain high, limiting the ability of fiscal policymakers to respond to new challenges. It also noted that the current uncertainty in the financial sector poses risks to the global economy.

The World Bank Group President, David Malpass, also predicted that global economic growth would slow to two percent from 3.1 percent in 2022. During his opening address at the ongoing Spring Meetings 2023 Media Call, he cited oil prices above $80 per barrel, recent banking sector stress, and persisting inflation pressures as causes of concern.

The combination of weak investment, higher interest rates, and relatively weak growth in advanced economies could lead to slow growth for years, increasing the fiscal stress and debt problems for many developing countries, according to Malpass.