The International Monetary Fund (IMF) has maintained Nigeria’s economic growth projection for 2023 at 3.2 percent, according to its latest update in the ‘World Economic Outlook: A Rocky Recovery (2023 Apr)’. Additionally, the IMF has revised Nigeria’s economic growth projection for 2024 to 3.0 percent, up from the 2.9 percent stated in its January update, indicating a positive outlook for the country’s economy.

The IMF, based in Washington, has also projected a decline in global economic growth from 3.4 percent in 2022 to 2.8 percent in 2023. It has highlighted that advanced economies may experience a particularly pronounced growth slowdown, with growth projected to fall from 2.7 percent in 2022 to 1.3 percent in 2023.

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In an alternative scenario with increased financial sector stress, global growth could decline to around 2.5 percent in 2023, with advanced economies experiencing growth below 1 percent.

The IMF further noted that while headline inflation is expected to decrease from 8.7 percent in 2022 to 7.0 percent in 2023 due to lower commodity prices, underlying (core) inflation is likely to decline more slowly. It also highlighted that inflation is unlikely to return to target before 2025 in most cases.

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The IMF identified high debt levels as one of the major forces shaping the global economy in 2022, which is expected to continue influencing 2023. It noted that these high debt levels may limit the ability of fiscal policymakers to respond to new challenges, posing risks to the global economy.

In addition, during the ongoing Spring Meetings 2023 Media Call, the World Bank Group President, David Malpass, predicted a global economic growth slowdown to 2 percent from 3.1 percent in 2022. This further underscores the challenging global economic outlook for the coming years.

As Nigeria and other countries navigate through these economic challenges, it will be crucial for policymakers to closely monitor and respond effectively to evolving economic conditions to support sustainable economic growth.