According to the International Monetary Fund (IMF), Nigeria’s economic growth will slow from 3.2% in 2023 to 3.0% in 2024.
This is because it kept Nigeria’s 3.2% economic growth forecast for 2023 in its most recent update to the world economic outlook.
The IMF increased the country’s economic growth forecast for 2024 from the 2.9% it stated in its January update to 3.0% in its report, “World Economic Outlook: A Rocky Recovery (2023 Apr).”
In a table, it was noted that Nigeria’s economy expanded by 3.3% in 2022. The Washington-based lender predicts that from 3.4% in 2022 to 2.8% in 2023, the rate of global economic growth will decline.
According to the statement, growth will decline from 3.4% in 2022 to 2.8% in 2023 before leveling off at 3.0% in 2024.
“A particularly pronounced growth slowdown is anticipated for advanced economies, going from 2.7% in 2022 to 1.3% in 2023. A plausible alternative scenario with increased financial sector stress shows that by 2023, global growth will have fallen to around 2.5%, with advanced economies’ growth falling below 1%.
“On the back of lower commodity prices, global headline inflation in the baseline is predicted to decline from 8.7% in 2022 to 7.0% in 2023, but underlying (core) inflation is likely to decline more slowly. Most likely, inflation won’t return to target until 2025.”
Although these prospects vary, the IMF claims that emerging markets and developing economies have generally better economic prospects than advanced economies. According to the report, growth is anticipated to be on average 3.9 percent in 2023 and 4.2 percent in 2024.
With debt levels continuing to be high and restricting the ability of fiscal policymakers to address new challenges, the IMF noted that the other significant factors that shaped the global economy in 2022 are likely to have an impact in 2023.
It further stated that the current financial sector uncertainty posed a threat to the world economy.
As a result of rising borrowing costs and slower economic growth, sovereign debt distress could spread to other nations, and the war in Ukraine could worsen and cause new spikes in food and energy prices, raising inflation.
David Malpass, the president of the World Bank Group, made a similar prediction on Tuesday, estimating that by 2022, the rate of global economic growth would drop to 2% from 3.1%.
In his welcome remarks at the ongoing Spring Meetings 2023 Media Call, he made this statement.
Oil prices have risen back above 80 dollars per barrel, he said. The recent stress on the banking sector slows down activity, and inflationary pressures continue.
The concern in our most recent reports, he continued, is that many developing countries will continue to experience slow growth for years to come, which will exacerbate their fiscal strain and debt issues. Weak investment, higher interest rates, and relatively weak growth in advanced economies are all contributing factors.
