IMF Slashes Nigeria’s Economic Growth Forecast From 3.2% To 2.9%

The International Monetary Fund has downgraded Nigeria’s economic growth by 0.3 percentage points from 3.2 per cent to 2.9 per cent for 2023.

The IMF disclosed this in its new World Economic Outlook (for October) themed, ‘Navigating Global Divergences,’ released on Tuesday.

It blamed the decline in it’s economic growth forecast on weaker oil and gas production than expected, partially as a result of maintenance work.

The IMF had in July this year forecasted that Nigeria’s economy would grow by 3.2 per cent in 2023, stating that growth in the country would be impacted by security issues in the oil sector.

But in the new projection, the IMF said the economic growth would rise to 3.1 per cent in 2024, with negative effects of high inflation on consumption taking hold.

It said, “Growth in Nigeria is projected to decline from 3.3 per cent in 2022 to 2.9 per cent in 2023 and 3.1 per cent in 2024, with negative effects of high inflation on consumption taking hold.

“The forecast for 2023 is revised downward by 0.3 percentage point, reflecting weaker oil and gas production than expected, partially as a result of maintenance work.

“Overall, global economic growth is projected to slow from 3.5 per cent in 2022 to 3.0 per cent in 2023 and 2.9 per cent in 2024, well below the historical (2000–19) average of 3.8 per cent.

“Advanced economies are expected to slow from 2.6 per cent in 2022 to 1.5 per cent in 2023 and 1.4 per cent in 2024 as policy tightening starts to bite. Emerging market and developing economies are projected to have a modest decline in growth from 4.1 per cent in 2022 to 4.0 per cent in both 2023 and 2024.”