The International Monetary Fund (IMF) has revised Nigeria’s real GDP growth projection for 2024 downward from 3.3% to 3.1%. This adjustment, revealed in the IMF’s latest global economic outlook report titled “Global Economy in a Sticky Spot,” reflects weaker-than-expected economic activity in Nigeria during the first quarter of 2024.
The report, published on Tuesday, notes that this downgrade is a significant factor contributing to the overall reduction in growth projections for Sub-Saharan Africa (SSA), which have been adjusted from 3.8% to 3.7%.
“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,” the IMF stated.
Other major African economies saw their growth projections for 2024 and 2025 remain steady at 0.9% and 1.2%, respectively. However, Egypt experienced a 0.3 percentage point decline in its economic growth projections, now forecasted to be 2.7% in 2024 and 4.1% in 2025, down from 3.0% and 4.4%.
Globally, the IMF projects steady growth at 3.2% in 2024 and 3.3% in 2025, consistent with its earlier forecast in April 2024. Despite this steady outlook, significant developments have occurred beneath the surface. In advanced economies, growth is expected to converge in the coming quarters, with the United States’ 2024 growth projection revised downward to 2.6%.
Conversely, growth forecasts for emerging markets and developing economies have been revised upward, primarily due to stronger activity in Asia, particularly in China and India. However, for Latin America and the Caribbean, growth projections for 2024 have been downgraded in Brazil, due to the near-term impact of flooding, and in Mexico, due to a moderation in demand.
The IMF’s adjustments underscore the varied and complex economic dynamics at play globally, highlighting the specific challenges and developments within different regions and countries.
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