Nigeria’s 2024 Gross Domestic Product (GDP) is projected to be $199.7 billion, marking the lowest figure in 19 years, according to the International Monetary Fund (IMF)’s October World Economic Outlook (WEO) report.
This is the worst since 2005 when GDP was $169.6 billion, reflecting the significant impact of exchange rate fluctuations on economic calculations.
The IMF explained that its GDP estimates in US dollars are based on national currency values converted at market exchange rates. If the projection holds or declines further, it would represent a major downturn for Nigeria’s economy.
“Exchange rate projections are provided by country economists for the group of other emerging markets and developing countries. Exchange rates for advanced economies are established in the WEO assumptions for each WEO exercise,” according to the IMF.
The GDP measures the monetary value of all final goods and services produced within a nation over a specific period.
Generally, a higher GDP signifies a strong economy, while a decline indicates economic challenges.
However, the Central Bank of Nigeria (CBN) has announced that the country’s external reserves reached $40.2 billion as of last Friday, reflecting significant growth from the previous year’s $34 billion.
In a similar development, the IMF has forecasted a decline in Nigeria’s debt burden.
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