IMF’s Downgrade of Nigeria’s 2023 Economic Growth Forecast

The International Monetary Fund (IMF) has revised Nigeria’s economic growth forecast for 2023, lowering it by 0. percentage points to 2. percent. This adjustment is due to weaker oil and gas production.

In its World Economic Outlook report, the IMF stated that Nigeria’s economy was initially projected to grow by 3. percent in 2023, but security issues in the oil sector would impact growth.

The IMF also attributed the downward revision to maintenance work causing lower-than-expected oil and gas production. Nigeria’s GDP grew by 2. 1 percent in the second quarter of 2023, according to the National Bureau of Statistics.

The IMF predicts that sub-Saharan Africa’s growth will decline to 3. percent in 2023 due to worsening weather shocks, the global slowdown, and domestic supply issues. However, growth is expected to pick up to 4. percent in 2024, which remains below the region’s historical average. Globally, economic growth is projected to slow to 3. percent in 2023 and 2. percent in 2024, below the historical average of 3. percent.

Advanced economies are expected to slow down due to policy tightening, while emerging market and developing economies will experience a modest decline in growth. Inflation is anticipated to decrease from 8. percent in 2022 to 6. percent in 2023 and 5. percent in 2024.