In 2024, Nigeria is expected to experience a 3.3 percent increase in economic growth, according to the latest forecast by the International Monetary Fund (IMF). The IMF World Economic Outlook April was revealed during the 2024 Spring Meetings of the World Bank and IMF in Washington, United States, providing a fresh forecast for the global economy. The most recent prediction is now 3.3 percent, which is an increase of 0.3 percentage points compared to the IMF’s January 2024 World Economic Outlook Update forecast of 3.0 percent.
Yet, the IMF has revised its prediction for Nigeria’s economic growth in 2025 to 3.0 percent, down from the previously anticipated 3.1 percent for the same period in January 2024. The IMF maintained its prediction of 3.8 percent economic growth for Sub-Saharan Africa in 2024, but revised down its forecast for 2025 to 4.0 percent, a decrease from the earlier estimate of 4.1 percent in January 2024. The IMF has increased its growth prediction for the worldwide economy in 2024 to 3.2 percent, surpassing the 3.1 percent forecast given in the WEO for January 2024.
Global economic growth is expected to remain steady at 3.2%.
The organization has decided to maintain its 3.2 percent estimate for 2025. According to the IMF, global economic growth is expected to remain steady at 3.2 percent for the years 2023, 2024, and 2025. There has been a slight increase in the forecast for 2024, up by 0.1 percentage points from the previous update in January 2024 and by 0.3 percentage points compared to the forecast in October 2023. Despite this, the forecast for worldwide economic expansion in 2024 and 2025 falls short of the average annual growth rate of 3.8 percent seen from 2000 to 2019.
This is due to tightened monetary policies, reduced fiscal assistance, and sluggish productivity growth. In the upcoming years, growth is anticipated to improve in advanced economies, primarily due to a rebound in the euro following a period of low growth in 2023. Conversely, emerging market and developing economies are forecasted to maintain steady growth levels in 2024 and 2025, varying by region. By 2025, economic growth in sub-Saharan Africa is forecasted to increase steadily from 3.4 percent in 2023 to 3.8 percent in 2024 and further to 4.0 percent in 2025.
There have been no changes in the 2024 forecast.
More so, this growth is expected due to the diminishing impact of previous weather-related challenges and an ongoing gradual enhancement in the region’s supply chain. There have been no changes in the 2024 forecast since the January 2024 WEO Update. Despite a decrease in Angola’s oil sector, which led to a downward revision, Nigeria saw an increase in their forecast, balancing out the overall outlook for the year. Based in Washington, D.C., the International Monetary Fund (IMF) is a significant global financial institution that operates under the United Nations, receiving funding from 190 member nations.
It is known for providing emergency financial assistance to countries in need and promoting stability in exchange rates worldwide. The main goal of the organization is to encourage collaboration among nations on economic issues, ensure stable financial systems, support global commerce, increase job opportunities, foster lasting economic development, and ensure alleviation of poverty on a global scale. IMF was founded in July 1944 during the Bretton Woods Conference by Harry Dexter White and John Maynard Keynes.
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Additionally, the organization originally consisted of 29 member countries with the purpose of rebuilding the global monetary system post-World War II. Over time, it has evolved to become a key player in addressing balance of payments challenges and global financial emergencies. As of 2016, the fund had accumulated a substantial reserve of SDR 477 billion (about US$667 billion) through a system where countries contribute funds to a pool that allows countries to borrow in case of balance of payments issues.
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