The International Monetary Fund (IMF) has revised downward its growth projection for Nigeria’s economy in 2024 to 2.9%, citing sluggish economic performance in the year’s first half. The new forecast, revealed in the IMF’s October 2024 World Economic Outlook (WEO), marks a 0.2 percentage point reduction from the 3.1% growth previously projected in July.

Despite the downward revision for 2024, the IMF offered a more optimistic outlook for 2025, raising Nigeria’s expected growth rate to 3.2% from the earlier projection of 3.0%.

The outlook for Sub-Saharan Africa has also been adjusted, with the IMF lowering its 2024 growth forecast to 3.6% from 3.7%. However, the region’s 2025 projection has been increased to 4.2%, up from 4.1%.

“In sub-Saharan Africa, GDP growth is projected to increase from an estimated 3.6% in 2023 to 4.2% in 2025, as the adverse impacts of prior weather shocks abate and supply constraints gradually ease,” the IMF stated in its report.

The downward revision for the region was partially attributed to Nigeria’s slower growth and the significant economic challenges in South Sudan, where ongoing conflict has resulted in a dramatic 26% economic contraction.

On the global front, the IMF maintained its 2024 growth forecast at 3.2%, consistent with its July projection. However, the global growth forecast for 2025 has been trimmed to 3.2% from the previous estimate of 3.3%.

The report was released during the ongoing annual meetings of the World Bank and IMF, providing a comprehensive overview of global economic prospects amid various regional challenges and developments.