Yesterday, the World Bank affirmed its economic growth forecast for Nigeria at 3.3 per cent in 2024, indicating mild buoyancy in the nation's economy despite macroeconomic adjustments. However, the forecast for Nigeria's economic growth in 2025 was downgraded to 3.5 per cent from the previously projected 3.7 per cent in January.
Similarly, the World Bank revised its forecast for Sub-Saharan economic growth in 2024 downward to 3.0 per cent from the earlier 3.8 per cent predicted in January.
The report highlighted that growth in Sub-Saharan Africa (SSA) weakened to 3.0 per cent in 2023, with Nigeria, South Africa, and Angola experiencing sluggish growth. However, private sector activity picked up in early 2024, supported by a strengthening global economy.
Despite ongoing macroeconomic adjustments, Nigeria's economy showed mild buoyancy in early 2024, even though growth slowed to 2.9 per cent in 2023. The projection for SSA indicates a pick-up in growth from 3.0 per cent in 2023 to 3.5 per cent in 2024, with an average of 4 per cent annually in 2025-26. This growth trajectory is expected to be supported by interest rate cuts, fostering private consumption and investment.
The report anticipates growth acceleration in the region's largest three economies from 1.8 per cent in 2023 to 2.4 per cent in 2024, averaging 2.6 per cent in 2025-26, although still below the region's average growth rate. Non-resource-rich economies are forecasted to maintain growth above their historical average, while resource-rich economies are expected to recover from slow growth in 2023, primarily due to declining metal prices.
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