IMF Predicts Nigeria’s Economy to Grow by 3.4% in 2022

The International Monetary Fund (IMF) has forecasted that the Nigeria’s economy would grow by 3.4 per cent in 2022 in its latest world economic outlook projections.

The IMF disclosed that a 3.1 per cent growth projection for the nation in 2023, down from 3.4 per cent in 2022 and 3.6 per cent in 2021.

Nigeria’s economic projection is lower than that of the Sub-Saharan African region, which is expected to grow by 4.5 per cent in 2021, 3.8 per cent in 2021, and 4.0 per cent.

The Washington-based lender also predicted that the global economy is expected to grow by 3.6 per cent in 2022 and 2023 as a result of the war on Ukraine, and sanctions on Russia.

“Compared to our January forecast, we have revised our projection for global growth downwards to 3.6 per cent in both 2022 and 2023. This reflects the direct impact of the war on Ukraine and sanctions on Russia, with both countries projected to experience steep contractions.

“This year’s growth outlook for the European Union has been revised downward by 1.1 percentage points due to the indirect effects of the war, making it the second-largest contributor to the overall downward revision,” it said.

The IMF declared that the war would slow economic growth and increase inflation.