The World Economic Outlook update for July 2024, titled “The Global Economy in a Sticky Spot,” recently released by the International Monetary Fund (IMF) highlighted several key aspects about the global economic situation. For Nigeria, the report revised the country’s real Gross Domestic Product (GDP) growth estimate for 2024 downward by 0.2%, from 3.3% in its initial estimate released in April to 3.1%. It attributed the downgrade to a decline in economic activities in the first quarter of the year. In the backdrop of Nigeria’s estimated decline, the IMF report also shows a reduction in its estimates for Sub-Saharan Africa’s (SSA) Economic Growth to 3.7% from 3.8%.
Meanwhile, the growth estimates for the other major African economies maintained the same position at 1.2% and 0.9% in 2025. In contrast, Egypt’s economic growth estimates for 2024 and 2025 dropped by 0.3% points. 2024 estimates to 2.7% from 3.0% in the previous estimate, while 2025 estimates declined to 4.1% from 4.4%. The IMF also stated that, just as reported in the forecast report earlier in April of this year, global growth is expected to remain unchanged at 3.2% in 2024 and 3.3% in 2025.
GDP growth decreased to 2.98 percent in 2024.
Regional differences in the economic outlook are substantial. While emerging countries face more difficulties because of tighter financial conditions and rising debt levels, advanced economies are predicted to grow slowly. It highlights the financial system’s weaknesses due to high debt, especially in emerging markets. To reduce these risks, the IMF recommends tighter regulatory frameworks. It also highlighted the complex and interconnected issues facing the global economy, underscoring the need for strong and well-coordinated policy responses in order to effectively navigate the fluctuating economic environment.
A report by the National Bureau of Statistics (NBS) shows that Nigeria’s GDP growth decreased to 2.98%, which was less than the rate of 3.46% registered in the fourth quarter of 2023. The services sector, which expanded by 4.32% and contributed 58.04% to the GDP overall, was a major driver of the GDP growth in the first quarter of 2024. The federal government anticipates the GDP to increase by 3.76% in 2024, which is more than major international development organizations’ forecast.
Several issues like high inflation and poverty still persist.
PricewaterhouseCoopers (PwC) report titled “Nigeria Economic Outlook: Navigating Economic Reforms” has also recently revealed that the second half of 2024 is expected to see a slight 2.9% increase in Nigeria’s GDP. The government’s economic reforms aimed at stabilizing the economy, serve as the foundation for this prediction. However, Nigeria still faces several serious issues like high Inflation and pervasive poverty. The report emphasizes that it is crucial to keep up these reforms in order to raise living standards and ensure sustainable economic growth.
With major economic reforms and the influence of global economic conditions, Nigeria’s 2024 economic forecast is both challenging and inspiring. The Nigerian government’s recent reforms have been essential to the country’s economic stabilization. Ultimate objective of these actions is to establish a more effective and transparent economic environment. Despite these encouraging developments, Nigeria continues to confront problems including high inflation—which reached 33.7% in April 2024—and poverty, with over 109 million people living below the national Poverty level as of 2023.
Related Artie: Nigeria’s GDP to rise by 2.9% in H2 2024 – PwC
Moreover, the effectiveness and continuous implementation of government reforms will also determine Nigeria’s economic future in 2024. With an emphasis on Social Protection programmes and crucial sector investments, the World Bank has pledged a $2.25 billion Loan to Nigeria to support its efforts to stabilize its economy. Maintaining Sustainable Development relies on if the country achieves its long-term objectives of reducing poverty and raising living standards. The government had noted that regardless of the hurdles they may cause in the short-term, the economic reforms are essential to the country’s long-term development.