The International Monetary Fund (IMF) has downgraded its forecast for Nigeria’s economic growth in 2024 from 3.3 per cent to 3.1 per cent.
The downgrade is 0.2 percentage points below the last forecast which was in April.
In its July 2024 World Economic Outlook released on Tuesday, IMF said a lower-than-expected activity in the first quarter (Q1) of the year impacted decisions for the downgrade.
The IMF, however, retained a 3.0 per cent forecast for Nigeria’s economic growth in 2025.
The international lender also downgraded its forecast for sub-Saharan Africa’s economic growth in 2024 to 3.7 per cent — from the April forecast of 3.8 per cent.
“The forecast for growth in sub-Saharan Africa is revised downward, mainly as a result of a 0.2 percentage point downward revision to the growth outlook in Nigeria amid weaker than expected activity in the first quarter of this year,” it said.
However, IMF increased its forecast for economic growth in the region for 2025 to 4.1 per cent — from 4.0 in its April projection.
IMF retained its global economic forecast at 3.2 per cent in 2024 and 3.3 percent in 2025.
“Growth is expected to remain stable. At 3.2 percent in 2024 and 3.3 percent in 2025, the forecast for global economic growth is broadly unchanged from that in April,” it said.
IMF also forecasted that global inflation will continue to decline.
