Nigeria’s economy has been tipped to grow by 3.2% in the coming year 2025 while inflation is estimated to drop to 25% in the same year.
This is according to the International Monetary Fund (IMF) in its recently published October Edition of the World Economic Outlook (WEO).
For Nigeria, the IMF’s recent GDP growth projection for 2025 represents a 0.2% increase from its earlier projection in July of this year.
According to the Fund, GDP growth in 2024 will stay at 2.9%- a downgrade compared to its projection in July of this year.
Read Also: IMF Downgrades Nigeria’s 2024 GDP Rise In Revised Economic Outlook
Nigeria’s economy in the first and second quarter of the year grew by 2.98% and 3.19% respectively 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, the global lender put the economic growth rate for the coming year at 4.2%- a downgrade compared to its earlier projection in April 2024.
Read Also: IMF Cuts Nigeria’s 2024 Economic Growth Forecast To 3.1%
The report pointed out climate change-induced weather shocks and supply chain constraints coupled with slower growth in Nigeria and a 26% contraction in Sudan’s economy due to ongoing conflicts in the country.
The report states, “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.”a
