The International Monetary Fund (IMF) has revised Nigeria’s economic growth forecast downward to 3.0% for 2025, citing weakening oil supply and escalating global trade tensions.
This is a decrease from the earlier projection of 3.4% in 2024.
The report was released on Tuesday at the ongoing IMF/World Bank Spring Meetings in Washington, D.C.
According to the IMF’s latest World Economic Outlook report, low-income countries relying heavily on commodity exports, like Nigeria, face worsening outlooks due to declining demand and revenue pressure.
Oil exporters will likely experience a drop in earnings, straining their fiscal positions.
The IMF warned of long-term adverse effects on global demand and investment due to rising trade restrictions and tariffs.
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Global growth is expected to remain modest, with emerging market and developing economies projected to grow by 3.7% in 2025.
The report also highlighted increased downside risks for sub-Saharan Africa and the possibility of a recession in the United States, adding uncertainty for countries with strong trade or financial linkages to the US economy.
(Editor: Oloyede Oworu)