The real GDP growth rate for Nigeria in 2024 has been revised downward by the International Monetary Fund (IMF) from 3.3% in its initial estimate released in April to 3.1%.
In a recent update to the global economic outlook issued on Tuesday, headlined “Global Economy in a Sticky Spot,” the IMF revealed this.
As per the research, the decline in the nation’s economic growth may be attributed to below-average activity during the period of January through March 2024.
The IMF further downgraded economic growth projections for Sub-Saharan Africa (SSA) on the back of a decline in economic activities in Nigeria from 3.8% to 3.7%.
READ ALSO: IMF Cuts Nigeria’s 2024 Economic Growth Forecast To 3.1%
The report reads, “The forecast for growth in sub-Saharan Africa is revised downward, mainly as a result of a 0.2 percentage point downward revision to the growth outlook in Nigeria amid weaker than expected activity in the first quarter of this year.”
Furthermore, the IMF left growth projections for other big economies in Africa unchanged at 0.9% in 2024 and 1.2% in 2025. Egypt on the other hand saw 0.3%-point decline in economic growth projections in 2024 and 2025 from 3.0% in the earlier projection to 2.7% and from 4.4% to 4.1%.
The IMF also reported that global growth is projected to remain steady at 3.2% in 2024 and 3.3% in 2025, consistent with its earlier forecast in April this year.
Although this projection aligns with the April 2024 World Economic Outlook, the report highlighted significant developments beneath the surface since then. In advanced economies, growth is expected to converge in the coming quarters. For instance, in the United States, the projected growth for 2024 has been revised downward to 2.6%.
In contrast, growth forecasts for emerging markets and developing economies have been revised upward, driven by stronger activity in Asia, particularly in China and India.
However, for Latin America and the Caribbean, the report indicated that growth projections for 2024 have been revised downward in Brazil, due to the near-term impact of flooding, and in Mexico, due to a moderation in demand.
