The World Bank yesterday affirmed its 3.3 per cent economic growth forecast for Nigeria in 2024 saying the nation’s economy was mildly buoyant in the early part of the year despite macroeconomic adjustments.
However, the World Bank downgraded its forecast for
Nigeria’s economic growth in 2025 to 3.5 per cent, from the 3.7 per cent
forecast made in January.
Similarly, the World Bank downgraded its forecast for
Sub-Saharan economic growth in 2024 to 3.0 per cent from 3.8 per cent forecast
made in January.
The report stated: “Growth in Sub-Saharan Africa (SSA)
weakened to 3.0 per cent in 2023. Growth in the region’s largest three
economies—Nigeria, South Africa, Angola—remained weak. In early 2024, private
sector activity picked up, buoyed by a strengthening global economy.
At the same time, many economies in the region continue to
struggle with weak government balance sheets, stemming partly from low revenue
collection and high debt-service costs, while some also need to manage the
adverse effects of currency depreciations. In Nigeria, growth slowed to 2.9 per
cent in 2023. Despite ongoing macroeconomic adjustments, the economy was mildly
buoyant in early 2024.
Growth in SSA is projected to pick up from 3.0 percent in
2023 to 3.5 percent in 2024 and about 4 percent annually in 2025-26, as fading
inflationary pressures allow for interest rate cuts, which will support private
consumption and investment.
Growth in the region’s largest three economies is expected
to accelerate from 1.8 percent in 2023 to 2.4 percent in 2024 and an average of
2.6 percent in 2025-26. Yet, this is markedly below the region’s average
growth.
Non-resource-rich economies are forecast to maintain growth
above their historical average rate, while resource-rich economies recover from
their slow growth in 2023 that mainly reflected declining metal prices.