IMF revises Nigeria’s economic growth outlook projection

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The International Monetary Fund (IMF) has downgraded its forecast for Nigeria’s economic growth for 2024 from 3.1 per cent to 3 per cent.

The IMF stated this in its revised World Economic Outlook for 2024 and 2025.

The report projected Sub-Saharan Africa’s economy to grow by 3.8 per cent in 2024 and 4.1 per cent in 2025 which is a drop from the 4.0 per cent economic growth or 2024 initially forecasted in October.

“In Sub-Saharan Africa, growth is projected to rise from an estimated 3.3% in 2023 to 3.8% in 2024 and 4.1% in 2025, as the negative effects of earlier weather shocks subside, and supply issues gradually improve.

The downward revision for 2024 of 0.2% point from October 2023 mainly reflects a weaker projection for South Africa on account of increasing logistical constraints, including those in the transportation sector, on economic activity.”

The IMF noted that nations implemented approximately 3,000 new trade restrictions last year, nearly three times the number recorded in 2019.

On the global stage, it noted that world economy is projected to grow by 3.1 per cent in 2024 which is an increase from the 2.9 per cent forecasted in October.

There several downside risks which include potential spikes in commodity prices due to geopolitical shocks and global supply disruptions.

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