IMF projects Nigeria’s economy will grow by 3.2% in 2025

The International Monetary Fund (IMF) has projected Nigeria’s economy to grow by 3.2% in 2025.

The Bretton Wood institution also expected the country’s inflation to drop to 25% the same year in its recently published October Edition of the World Economic Outlook (WEO).

For Nigeria, the IMF’s recent Gross Domestic Product (GDP) growth projection for 2025 represents a 0.2% increase from its last projection released in July.

According to IMF, GDP growth in 2024 will stay at 2.9%- a downgrade from its last projection.

Nigeria’s economy grew by 2.98% and 3.19% in the first and second quarter of the year amid a surge in inflation and further depreciation of the Naira.

The GDP growth rate in the first two quarters of 2024 surpassed the figure for 2023 representing resilience despite severe macroeconomic shocks with a spike in petrol prices and a 28-year high inflation rate.

On inflation, the Washington-based institution projected Nigeria’s inflation to steady at 25% in 2025 and 14% by 2029.

For Sub-Saharan Africa, it put the economic growth rate for the coming year at 4.2%- a downgrade compared to its earlier projection released in April.

The report read: “In sub-Saharan Africa, GDP growth is similarly projected to increase, from an estimated 3.6 per cent in 2023 to 4.2 per cent in 2025, as the adverse impacts of prior weather shocks abate and supply constraints gradually ease.

“Compared with that in April, the regional forecast is revised downward by 0.2 percentage points for 2024 and upward by 0.1 percentage points for 2025. Besides the ongoing conflict that has led to a 26 per cent contraction of the South Sudanese economy, the revision reflects slower growth in Nigeria, amid weaker-than-expected activity in the first half of the year.”

By: Babajide Okeowo

The post IMF projects Nigeria’s economy will grow by 3.2% in 2025 appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.