THE International Monetary Fund (IMF) has reduced its projected economic growth rate for Nigeria in 2024 to 3.1%, as stated in the July 2024 World Economic Outlook report released yesterday.
The downgrade is attributed to weaker growth experienced in the first quarter of 2024, prompting a revision from the initial forecast of 3.3%.
This adjustment follows lower-than-anticipated Gross Domestic Product (GDP) and growth figures in Q1 2024.
The IMF has, however, maintained its 3.0% growth forecast for Nigeria in 2025.
Data from the National Bureau of Statistics (NBS) revealed a decline in Nigeria’s GDP growth to 2.98% in Q1 2024 from 3.46% in Q4 2023, further contributing to the downward revision.
Consequently, the IMF also revised its Sub-Saharan Africa economic growth forecast for 2024 to 3.7% from the previous projection of 3.8%, while increasing the forecast for 2025 to 4.1% from 4.0%.
In light of these adjustments, global economic growth forecasts remain at 3.2% in 2024 and 3.3% in 2025.
The IMF emphasized the need for a cautious policy mix to balance price stability and economic growth amidst challenges such as escalating trade tensions and policy uncertainty.
Nigeria’s economic strains are compounded by soaring inflation rates, with June 2024 figures hitting 34.19%, up from 33.95% in May 2024.
The increase in food prices has been a notable factor, leading to government interventions such as the suspension of duties on essential food imports and the procurement of agricultural machinery to address the food crisis facing the nation.
Insecurity and inadequate resources continue to hinder food production in Nigeria, exacerbating the challenges faced by the economy.
