The World Bank has affirmed its 3.3 per cent economic growth forecast for Nigeria in 2024, indicating that 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.
The World Bank also downgraded its forecast for Sub-Saharan economic growth in 2024 to 3.0 per cent from the 3.8 per cent forecast made earlier in the year.
According to the report, “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.”
The report further highlighted that 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, despite ongoing macroeconomic adjustments, the economy was mildly buoyant in early 2024.
Looking ahead, the 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.
