2023: Nigeria’s Economic Growth Will Slow To 3%

THE International Monetary Fund has projected that Nigeria’s economic growth will slow  to 3.0 percent  in 2023. It added that the  inflation rate will drop to 17 per cent.

IMF also forecasted for global economy growth in 2022 at 3.2 percent, and however lowered its forecast for 2023 to 2.7 per cent, representing  0.2 percentage points lower than the July forecast.

Making these projections in the IMF October World Economic Outlook, WEO, released on the sidelines of the ongoing IMF/World Bank annual meetings, in Washington DC, the Fund called for fiscal policies that support current efforts by central banks to curb inflation as well as protect the vulnerable from the impact of inflation.

According to the IMF, Nigeria is projected to record Gross Domestic Product, GDP, growth of 3.2 per cent in 2022, and 3.0 per cent in 2023, both representing 0.2 percentage points lower than the 3.4 per cent and 3.2 percent respectively  projected in the July WEO.

The IMF however forecasted a decline in Nigeria’s inflation rate to 19 per cent in 2022 and 17 per cent in 2023.“Inflation forecast

Speaking at the October WEO press briefing held on the sidelines  of the ongoing IMF/World Bank annual meetings, in Washington DC, Daniel Leigh, Divisional Chief,  Research Department, IMF, said that the lower inflation rate projections for Nigeria is premised on the recent hike in the Monetary Policy Rate, MPR by the Central Bank of Nigeria, CBN, as well as global decline in prices of crude oil and food.

He said: “For Nigeria, in particular, we forecast inflation at about 19 per cent this year, but then some moderation next year down to 17 per cent, and part of that does reflect the monetary policy actions which is the 4.0 per cent point increase in Nigeria’s Central Bank as well as the decline that we expect in oil and food prices globally.”

IMF said: “The global economy continues to face steep challenges, shaped by the Russian invasion of Ukraine, a cost-of-living crisis caused by persistent and broadening inflation pressures, and the slowdown in China.