IMF projects 3% economic growth for Nigeria
The International Monetary Fund (IMF) has released it new economic outlook report, reversing Nigeria’s economic growth projections for 2025 and 2026.
The April report was released on Tuesday during World Economic Outlook (WEO) at a press briefing at the ongoing IMF/World Bank 2025 Spring Meetings in Washington, D.C.
The report cut the forecast for Nigeria’s growth to 3.0 per cent for 2025 and 2.7 per cent for 2026, from the 3.2 per cent and 3.0 per cent projection earlier stated in the January WEO update.
The IMF report cited mounting global uncertainties and sustained weakness in oil prices.
According to the report, the IMF places the growing probability of a global recession at 40 per cent compared to previous 25 per cent estimation it released in October 2024.
The IMF attributed the downward revision of the the growth to a combination of domestic economic challenges and worsening global conditions.
It said this includes trade tensions, reduced demand from advanced economies, and a significant drop in crude oil prices.
In the report, the Fund warned that without strong policy responses, Nigeria might find it difficult to maintain macroeconomic stability amid external headwinds.
The IMF Economic Counsellor and Director of Research Department, Pierre-Olivier Gourinchas, said that emerging economies like Nigeria were particularly vulnerable due to their integration into global supply chains.
“The uncertainty is discouraging investment and activity, and these countries are suffering from declining demand for their exports,” Gourinchas said. (NAN)
