Nigeria’s Economic Growth Forecast Slashed to 3.1% by IMF Amidst Soaring Inflation
The International Monetary Fund (IMF) has downgraded Nigeria’s economic growth forecast for 2024 to 3.1%, citing weaker-than-expected growth in the first quarter of the year. This reduction, reported in the July 2024 World Economic Outlook, represents a 0.2 percentage point decrease from the previous forecast of 3.3%.
The downgrade comes as Nigeria’s inflation rate reaches a new high of 34.19% for June 2024, according to the National Bureau of Statistics (NBS). This increase, combined with a decline in Gross Domestic Product (GDP) growth, has led to concerns about the country’s economic outlook.
The IMF’s decision also impacts the forecast for Sub-Saharan Africa’s economic growth, which has been revised downward to 3.7% for 2024. However, the organization maintains its global economic growth forecasts of 3.2% for 2024 and 3.3% for 2025.
Nigeria’s government has implemented measures to address the economic challenges, including suspending duties and tariffs on essential food imports and approving the procurement of tractors and trailers to enhance food production. Despite these efforts, experts highlight insecurity, lack of equipment, and other issues as ongoing obstacles to food production and economic growth in Nigeria.