The International Monetary Fund (IMF) has said that Nigeria’s economy will grow by 3.3% in 2024, stating also that the country’s inflation rate will drop to 26.3% this year.
According to its revised Global Economic Outlook for 2024 released on Tuesday, the Bretton Woods institution left the growth prospects for Sub-Sahara Africa (SSA) in 2024 unchanged from its previous outlook earlier in the year as the downward forecast in Angola was offset by an upgrade in Nigeria’s growth prospects.
The report noted that Nigeria’s economy would grow by 3.0% in 2025, representing a 0.1% decline from the Fund’s projection for January 2024.
Furthermore, the SSA region, according to the report, is expected to grow by 3.8% in 2024 and 4.0% in 2025.
The report stated, “In sub-Saharan Africa, growth is projected to rise from an estimated 3.4 percent in 2023 to 3.8 percent in 2024 and 4.0 percent in 2025, as the negative effects of earlier weather shocks subside, and supply issues gradually improve.”
The World Bank, in its recently published Africa Pulse publication, had projected Nigeria’s inflation to be lower than the IMF’s projection at 24.8% in 2024 and to settle at 15.1% in 2026. Coincidentally, the Bank and the IMF agreed on a 3.3% growth rate for the country.
The administration of President Bola Ahmed Tinubu has had to battle high inflation levels occasioned by the fuel subsidy removal and exchange rate revaluation. Efforts aimed at stabilising the foreign exchange market has yielded significant results in the past few weeks.
Culled from Nairametrics
