Nigerian Economy: IMF Releases Interesting Projections

The International Monetary Fund (IMF) has released projections of interest as pertaining to the Nigerian economy.

Part of it is that it would expand by 3.2% in the coming year 2025 while inflation is estimated to drop to 25% in the same year.

IMF’s recent GDP growth projection for 2025 represents a 0.2% increase from its earlier projection in July of this year, and it is coming amidst widespread complaints about falling value of the Naira.

The Naira exchanged for 1,642.74 to the United States Dollar today, and at that rate, the purchasing power of the average Nigerian remains with a lot of punctures.

Analysts have been suggesting proactive measures, like improved local production by policy to buoy up the Nigerian economy.

Notwithstanding, the IMF projects that GDP growth in 2024 would stay at 2.9%- a downgrade compared to its projection in July of this year.

According to the World Economic Outlook (WEO) global economic growth in 2025 would remain unchanged at 3.2% from 2024, while Nigeria’s inflation is expected to remain steady at 25% in 2025 and 14% by 2029.

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“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”, it said.