The International Monetary Fund (IMF) has downgraded Nigeria’s real GDP growth projection for 2024 from 3.3% to 3.1%, citing weaker-than-expected economic activities in the first quarter of the year. This downgrade was disclosed in a recent update to the global economic outlook report titled “Global Economy in a Sticky Spot,” published on Tuesday.
According to the report, the IMF has also revised downward its economic growth projections for Sub-Saharan Africa (SSA) from 3.8% to 3.7%, mainly due to the 0.2 percentage point downward revision to Nigeria’s growth outlook. The report states that Nigeria’s revised growth forecast has directly impacted the overall economic growth projections for the region.
In addition to Nigeria, the IMF has also downgraded economic growth projections for Egypt, with a 0.3 percentage point decline in GDP growth forecast for both 2024 and 2025. The projections have been revised from 3.0% to 2.7% in 2024, and from 4.4% to 4.1% in 2025.
The IMF’s report highlights the various challenges that these African economies are facing, including the decline in economic activities and political uncertainties. It is crucial for policymakers in these countries to address these challenges and implement appropriate reforms to foster sustainable economic growth in the future.
