The International Monetary Fund (IMF) has downgraded Nigeria’s economic growth projection from 3.4 per cent projected in its July 2022 report to 3.2 per cent in 2022.
This shows a decline of 0.2 percentage points.
In its World Economic Outlook (WEO) for October 2022 titled, “Countering the Cost-of-Living Crisis” and published on Tuesday, the IMF said also downgraded the economic growth projection for sub-Saharan Africa from 3.8 per cent to 3.6 per cent in October 2022, citing tighter financial and monetary conditions.
“In sub-Saharan Africa, the growth outlook is slightly weaker than predicted in July, with a decline from 4.7 percent in 2021 to 3.6 percent and 3.7 percent in 2022 and 2023, respectively — downward revisions of 0.2 percentage points and 0.3 percentage points, respectively.
“This weaker outlook reflects lower trading partner growth, tighter financial and monetary conditions, and a negative shift in the commodity terms of trade,” the report said.
The report projected that growth in the Middle East and Central Asia would increase to 5.0 per cent in 2022.
The Washington-based institution said the development reflects “a favourable outlook for the region’s oil exporters and an unexpectedly mild impact of the war in Ukraine on the Caucasus and Central Asia”.
“In 2023, growth in the region is set to moderate to 3.6 percent as oil prices decline and the headwinds from the global slowdown and the war in Ukraine take hold,” it added.
