In its most recent update on world economic outlook, the International Monetary Fund kept its prediction of Nigeria’s 3.2% GDP growth for 2023.
The IMF increased the country’s 2024 economic growth prediction from the 2.9 percent it announced in its January update to 3.0 percent in the “World Economic Outlook: A Rough Recovery” (2023 April).
The Washington-based lender projects that global economic growth would slow from 3.4% in 2022 to 2.8% in 2023.
It said, “The baseline forecast is for growth to fall from 3.4 per cent in 2022 to 2.8 per cent in 2023, before settling at 3.0 per cent in 2024.
“Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 per cent in 2022 to 1.3 per cent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 per cent in 2023 with advanced economic growth falling below 1 per cent.
“Global headline inflation in the baseline is set to fall from 8.7 per cent in 2022 to 7.0 per cent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflation’s return to target is unlikely before 2025 in most cases.”
The IMF observed that, with debt levels continuing high and constraining fiscal policymakers’ ability to address new difficulties, the other key factors that significantly affected the global economy in 2022 are expected to have an impact in 2023.
The current banking sector instability, it continued, is risky for the world economy.
Moreover, World Bank Group President David Malpass stated today (Tuesday) that he expects global economic growth to fall to 2% from 3.1% in 2022.
He made this statement in his opening remarks at the current Spring Meetings 2023 Media Call.
