IMF scales up Nigeria’s 2023 economic growth prospects to 3.2 percent

The International Monetary Fund (IMF) has scaled up Nigeria’s economic growth projection to 3.2 percent in 2023.

This latest projection is 0.1 percentage point higher than the 3.0 percent earlier forecast in its October 2022 report.

According to the global financial institution based in Washington, in its January 2023 world economic outlook (WEO), it clarified that the small upward review for Nigeria’s growth in 2023 was occasioned by measures to address insecurity issues in the oil sector.

In the report, titled ‘inflation peaking amid low growth’, the IMF projected that Nigeria’s growth rate would slow to 2.9 percent in 2024.

The downgrade for 2023 reflects mainly lower oil production in line with an agreement through OPEC+ (Organization of the Petroleum Exporting Countries, including Russia and other non-OPEC oil exporters), while non-oil growth is expected to remain robust.

The global economy is poised to slow this year, before rebounding next year. Growth will remain weak by historical standards, as the fight against inflation and Russia’s war in Ukraine weigh on activity,” Pierre-Olivier Gourinchas, the chief economist and director of IMF’s research department.

Despite these headwinds, the outlook is less gloomy than in our October forecast, and could represent a turning point, with growth bottoming out and inflation declining.”

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