Nigeria’s economic development according to the International Monetary Fund (IMF) would slow in 2023 and 2024 due to security concerns in the oil sector.
It predicted that Nigeria’s economy will rise by 3.2% in 2023, then fall to 3.0% in 2024.
This was revealed by the IMF in its newest report, ‘World Economic Outlook Update: Near-Term Resilience, Persistent Challenges (July 2023)’.
According to the analysis, Nigeria’s growth rate is lower than that of the Sub-Saharan African region, which is anticipated to increase by 3.5% in 2023 and 4.1% in 2024.
In a statement on the global economy, the IMF predicted that global growth would dip from an estimated 3.5% in 2022 to 3.0% in both 2023 and 2024.
While its prognosis for 2023 was slightly higher than expected in April 2023, it remained weak by historical standards.
This, it said, came as the Central Bank’s policy rate hike to combat inflation continued to weigh on economic growth.
It predicted that sovereign financial problems will extend to a broader range of economies.
It added, “In most economies, the priority remains achieving sustained disinflation while ensuring financial stability. Therefore, central banks should remain focused on restoring price stability and strengthening financial supervision and risk monitoring.
“Should market strains materialise, countries should provide liquidity promptly while mitigating the possibility of moral hazard. They should also build fiscal buffers, with the composition of fiscal adjustment ensuring targeted support for the most vulnerable.
“Improvements to the supply side of the economy would facilitate fiscal consolidation and a smoother decline of inflation toward target levels.”
