Market News

The World Bank has maintained its 2024 growth forecast for Nigeria at 3.3 per cent, the same projection it made for the country in June.

The Bank, which affirmed the 3.3 per cent growth forecast in its latest regional economic outlook report, Africa’s Pulse, released on Monday, however, revised Nigeria’s growth forecast for 2025 upwards to 3.6 per cent from its previous 3.5 per cent projection.

The Bretton Woods institution said: “Economic growth in Nigeria is projected at 3.3 per cent in 2024 and 3.6 per cent in 2025–26 as macroeconomic and fiscal reforms gradually start yielding results. Inflation peaked in June 2024 (at 34.2% year-on-year) and decelerated to 33.4 per cent in July and further to 32.2 per cent in August.

“While the inflationary effects of a weakened naira in the first months of this year and the removal of the gasoline subsidy in the second half of 2023 appeared to be gradually subsiding, a further increase in gasoline prices by 40-45 per cent in September may reverse the disinflationary trend.

The consolidation of macroeconomic reforms should support higher growth in the country in 2025.” Citing the destruction of Sudan’s economy in that country’s ongoing civil war, the World Bank lowered its economic growth forecast for sub-Saharan Africa this year to three per cent from 3.4 per cent.

It, however, said growth in the region is expected to remain comfortably above last year’s 2.4 per cent thanks to higher private consumption and investment.