The International Monetary Fund (IMF) has projected that the Nigerian economy will grow by 3.2 percent in 2025, followed by a sharp decline to 3.0 percent in 2026.
This is contained in IMF’s latest World World Economic Outlook Update, tagged: “Global Growth: Divergent and Uncertain”.
The current projections signal an increase in growth from 2.9 percent projected in 2023 and 3.1 percent in 2024.
The IMF report also forecast that Sub-Saharan Africa will maintain economic growth of 4.2 percent in 2025 and 2026, representing an increase from 3.6 percent in 2023 and 3.8 percent in 2024.
Read also: Naira fall takes $310bn toll on economy
Furthermore, the update showed that global growth will rise by 3.3 percent both in 2025 and 2026, below the historical (2000–20219) average of 3.7 percent.
“The forecast for 2025 is broadly unchanged from that in the October 2024 World Economic Outlook (WEO), primarily on account of an upward revision in the United States offsetting downward revisions in other major economies,” the report said.
The world economic outlook also projected that global headline inflation will decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.
The IMF added that, “Medium-term risks to the baseline are tilted to the downside, while the near-term outlook is characterized by divergent risks. Upside risks could lift already-robust growth in the United States in the short run, whereas risks in other countries are on the downside amid elevated policy uncertainty.
“Policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy, with implications for fiscal sustainability and financial stability. Managing these risks requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and cooperation.”
It however noted that although the degree of grip varies widely across countries, global economy is holding steady.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
