The International Monetary Fund (IMF) has revised its growth forecast for Nigeria’s economy in 2024, lowering it to 2.9%. This adjustment is attributed to weaker-than-expected economic activity in the first half of the year. The updated forecast was released in the IMF’s October 2024 World Economic Outlook (WEO) during the ongoing annual meetings of the World Bank and IMF on October 22.
This new projection represents a decrease of 0.2 percentage points from the previously estimated growth rate of 3.1% outlined in the July 2024 WEO. However, the IMF has slightly increased its forecast for Nigeria’s economic growth in 2025, now predicting a growth rate of 3.2%, up from 3.0% in the earlier report.
The IMF noted that, in the broader context of sub-Saharan Africa, GDP growth is expected to rise from an estimated 3.6% in 2023 to 4.2% in 2025 as the impacts of previous weather shocks diminish and supply constraints begin to ease. The downgrade for Nigeria specifically has contributed to the overall slower growth outlook for the region.
Additionally, the report highlighted ongoing challenges, including significant economic contraction in South Sudan, which has experienced a staggering 26% decline in its economy due to conflict.
On a global scale, the IMF has maintained its 2024 growth forecast at 3.2%, consistent with predictions made in the July WEO