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Nigeria’s economy to see 3.3% growth in 2024

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By Okunloye Abiodun

World Bank GEP maintains an optimistic outlook for Nigeria in the coming year.

According to the World Bank, Nigeria’s economy is anticipated to experience a growth rate of 3.3 percent in the current year. This is an increase of 0.4 percentage points from the previous year’s closing rate of 2.9 percent. While this projection falls slightly below the expected expansion of sub-Saharan Africa at 3.8 percent, it still surpasses the estimated global average of 2.3 percent by a considerable margin. The World Bank’s Global Economic Prospect (GEP) report maintains an optimistic outlook for Nigeria, forecasting a robust growth of 3.7 percent in the coming year.

This projection surpasses the global output growth by over one percentage point, highlighting Nigeria’s potential for substantial economic expansion. The global bank’s increasing optimism in the economy’s potential has been reaffirmed by the latest projections for 2024 and 2025, which far surpass the June forecasts of 3.0 and 3.1 per cent, respectively. These projections serve as evidence that the downstream oil and foreign exchange reforms, initiated in the middle of last year, have had a significant impact.

Growth drivers include farming, building, rendering services, and others.

The bank also highlights the gradual positive outcomes from the macro-fiscal reforms that commenced in June, anticipating a return to pre-pandemic per capita income levels by 2025. The primary drivers of growth, as highlighted, would originate predominantly from sectors such as farming, building, rendering services, and engaging in commercial activities. As outlined in the report, inflation in Nigeria is anticipated to diminish gradually due to the diminishing impact of exchange rate reforms and the elimination of fuel subsidies from the previous year.

Additionally, the implementation of structural reforms is predicted to enhance fiscal revenue. In regards to Sub-Saharan Africa (SSA), an upsurge in growth is projected, reaching 3.8 percent in 2024 and further strengthening to 4.1 percent in 2025 as inflationary pressures subside and financial circumstances improve. The estimations for regional expansion in 2024 and 2025 remain relatively consistent with the forecasts made in June. However, beneath this overall outlook lies a combination of positive revisions and negative revisions at the individual country level.

Increasing geopolitical tensions should be tackled.

Although the major economies in Sub-Saharan Africa are projected to have slower growth compared to the rest of the region, economies without abundant resources are expected to maintain a growth rate higher than the regional average. The report also states that if it excludes the three largest economies in Sub-Saharan Africa, the region as a whole is expected to experience a boost in growth from 3.9% in 2023 to 5% in 2024 and even further to 5.3% in 2025.

Also. the report noted that this year’s growth rate would be the most sluggish in three decades. However, the report also highlighted a positive aspect, stating that the global economy has improved compared to its state one year ago. Nonetheless, a warning was issued regarding the increasing geopolitical tensions, which, if not addressed adequately, may give rise to additional risks in the near future for the worldwide economy. The 2020s could be remembered as a decade full of missed chances unless significant changes are made. Economic growth in the near future will continue to be lacklustre, resulting in a dire situation for several developing nations, particularly the most impoverished ones.

Related Article: Predictions on Nigeria’s economy for 2024 

These countries will find themselves trapped in a cycle of overwhelming debt and uncertain access to food, affecting nearly a third of the population. There are numerous global priorities that would face hindrances if this were to happen. However, there are still chances to change the situation for the better. The Chief Economist and Senior Vice President of the World Bank Group, Indermit Gill, emphasised that their report provides a concise path towards progress. It clearly outlines the potential transformation that can be attained if governments take immediate action to enhance investment and fortify fiscal policy frameworks.


Related Link

World Bank: Website


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AN-Toni
Editor
1 month ago

Nigeria’s economy to see 3.3% growth in 2024.World Bank GEP maintains an optimistic outlook for Nigeria in the coming year.Express your point of view.

Adeoye Adegoke
Member
1 month ago

That’s great news! It’s really encouraging to hear that the World Bank GEP maintains an optimistic outlook for Nigeria’s economy in 2024, with a projected growth rate of 3.3%. This positive forecast suggests that Nigeria is on track for economic progress and development in the coming year.
A growing economy can have numerous benefits, such as increased job opportunities, improved standards of living, and enhanced infrastructure development. It’s important for the government and stakeholders to continue implementing policies and initiatives that support sustainable economic growth and address key challenges.
However, it’s also essential to ensure that the benefits of economic growth are inclusive and reach all segments of society. This means prioritizing investments in sectors like education, healthcare, and infrastructure to create an enabling environment for sustainable development.
This optimistic outlook from the World Bank is a promising sign for Nigeria’s economic future. Let’s hope that the projected growth becomes a reality and brings positive changes to the lives of Nigerians. 📈🌍

Taiwo
Member
1 month ago

2024 will witness a 3.3% expansion in Nigeria’s economy. Nigeria’s future is still expected to be bright, according to World Bank GEP.I sincerely hope that in 2024, our economy continues to grow at this rate. We are seeing a sharp downturn in our economy. Adopting laws and initiatives that will strengthen it is vital.

Kazeem1
Member
1 month ago

Though it’s encouraging that the World Bank projects 3.3% increase in Nigeria’s GDP in 2024, it’s crucial to keep in mind that growth by itself does not always indicate complete prosperity. If the government takes the required actions to foster a climate that is favorable to companies and investors, I think Nigeria’s economy has the capacity to expand rapidly.

SarahDiv
Member
1 month ago

This positive outlook for Nigeria’s economy in 2024 is encouraging news. It reflects the potential for growth in key sectors and suggests that recent reforms are making a positive impact. However, geopolitical tensions globally need careful attention. Overall, the forecast indicates opportunities for progress if the right actions are taken.