Nigeria’s economic growth was reduced by the International Monetary Fund (IMF) by 0.3%. The IMF blamed Nigeria’s downgrade for its uncertain crude oil production, according to the study titled “2023 World Economic Outlook,” which was released Wednesday at its ongoing annual meetings in Marrakech, Morocco.
In particular, the Outlook estimate predicts that Nigeria’s GDP would grow by 2.9% in 2023 after declining to 3.3% in 2022, with a little increase to 3.1% in 2024.
The negative impacts of excessive inflation on consumption were the foundation of the Bretton Woods institution’s forecasts. Due in part to maintenance work, the 2023 projection has been revised downward by 0.3% points, reflecting poorer oil and gas output.
Similarly, growth in sub-Saharan Africa was predicted to reach 3.3% in 2023 and then reach 4.0% in 2024. Revisions for 2023 and 2024 have been made lower by 0.2% and 0.1%, respectively.
This growth trajectory is still below the historical average of 4.8%, according to the research. The reduction in the forecast is ascribed to intensifying meteorological shocks, the worldwide economic downturn, and domestic supply issues, particularly in the electrical industry.
Globally, it is anticipated that the growth rate will, on average, decline from 3.5 percent in 2022 to 3.0 percent in 2023 and then to 2.9 percent in 2024.
On the other hand, growth in emerging markets and developing economies is expected to fall rather modestly, from 4.1% in 2022 to 4.0 % in 2023 and 2024.
“It is imperative to avoid further fragmentation in the global economic landscape as it could result in costly delays. Collaboration across various domains is essential.” The need to restore trust in multilateral systems is an urgent one.”
“It is imperative to revitalize a framework predicated on well-established regulations that expedite global collaboration, foster global well-being, and proficiently oversee potentially disruptive emerging technologies, such as artificial intelligence.”
Strengthening trade policy predictability should be a primary goal of these essential measures. According to the research, “a clear, stable trade policy environment is paramount to provide businesses, investors, and nations with a predictable framework that fosters international trade relationships that are mutually beneficial and encourage economic growth.”
The report emphasized that progress in addressing the interrelated issues impeding global recovery requires multilateral cooperation.
Pierre-Olivier Gourinchas, the report’s foreword author and Economic Counsellor, said, “All countries should work to limit geoeconomic fragmentation that stops us from making progress together toward common goals. Instead, they should work to rebuild trust in rules-based multilateral frameworks that improve openness and policy certainty and help promote shared global prosperity. It is crucial to have a strong international financial safety net with the IMF at its core and ample resources.”
Speaking specifically about Nigeria, Division Chief of the IMF Research Department Daniel Leigh stated that the demonetization, rising inflation, shocks to agriculture, and hydrocarbon output are some of the reasons for the downgrading.
In his own words: “President Tinubu has also moved swiftly to implement significant reforms, such as eliminating gasoline subsidies and harmonizing the official exchange rate. We regard these early, daring reforms as laying the groundwork for more robust and inclusive growth, so we applaud them.
