IMF predicts Nigeria's 2024 growth forecast to be 3.0%

The IMF reports that the country’s economic growth will witness a decline from the 3.2% growth predicted for 2023, to 3.0% in 2024, a disturbing development as the country is about to witness a power transition in the coming months.

The IMF report further noted that at 3.2% for 2023, and 3.0% for 2024, Nigeria’s growth prediction for the period becomes Sub-Saharan Africa’s lowest as the region’s average prediction for 2024 stands at 4.2 per cent and 3.6 per cent for 2023.

While the 2024 prediction indicates a drop, the ‘World Economic Outlook: A Rocky Recovery (2023 Apr) report by the IMF had earlier predicted a 2.9% growth prediction for Nigeria in 2024 in its January update.

The recent prediction when compared with the January 2023 update, therefore, indicates a bright outlook for the country’s 2024 economic growth projection for 2024 as it has been upgraded to 3.0 per cent

The IMF has also indicated that the global economy may witness a drop in its economic growth.

This was further confirmed by the World Bank Group President, David Malpass, who predicted in a separate forum, that global economic growth would drop further to two per cent from 3.1 per cent in 2022.

According to the IMF, globally, the prediction for economic growth has indicated a drop from 3.4 per cent in 2022 to 2.8 per cent in 2023.

It said, “The baseline forecast is for growth to fall from 3.4 per cent in 2022 to 2.8 per cent in 2023, before settling at 3.0 per cent in 2024.

“Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 per cent in 2022 to 1.3 per cent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 per cent in 2023 with advanced economic growth falling below 1 per cent.”

The IMF also noted the possibility of an improved economic prospect by the developing economies and emerging markets, a development which has put them in a stronger position than those of advanced economies.