The International Monetary Fund (IMF) has forecasted Nigeria to grow by three percent in 2025.
This was released by the IMF’s latest World Economic Outlook (WEO) update report ‘The Global Economy in a sticky spot” on Thursday.
It has previously been predicted by IMF in April for Nigeria to grow by 3.1 percent which is higher than the predicted growth in July.
This is as a result of Nigeria embarking on some monetary reforms with the central bank clearing foreign exchange backlog and the federal government removing petrol subsidies.
The country is however facing galloping inflation and rising poverty, which tend to dent the ongoing reforms.
South Africa’s growth in 2025 is projected at 1.2 percent from 0.9 percent this year, Brazil’s stands at 2.4 percent growth from 2.1 percent in 2024.
India’s projection is higher than Nigeria’s at 6.5 percent in 2025, from 7 percent this year.
Furthermore, the IMF said Mexico will grow by 1.6 percent in 2025 as against 2.2 percent in 2024.
According to the report, the global growth outlook is still in line with what was projected in April, but rising inflation may slow down the process of normalising monetary policies in emerging markets.
“At the same time, several central banks in emerging market economies remain cautious about cutting rates owing to external risks triggered by changes in interest rate differentials and associated depreciation of those economies’ currencies against the dollar,” the report said.
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