The International Monetary Fund (IMF) has forecasted global growth at 3.1% in 2024 and 3.2% in 2025, according to its latest World Economic Outlook (WEO) Update Report for January 2024. Titled “Moderating Inflation and Steady Growth Open Path to Soft Landing,” the report highlighted positive revisions due to robust resilience in the United States and key emerging markets, coupled with fiscal support in China.
The 2024 projection is 0.2 percentage points higher than the October estimates of the 2023 WEO, reflecting unexpected strength in major economies. However, the forecast remains below the historical average of 3.8% from 2000 to 2019.
In Sub-Saharan Africa, the report projects a growth rate of 3.8% in 2024 and 4.1% in 2025. For Nigeria, economic growth is expected to be 3.0% in 2024 and 3.1% in 2025.
The report noted a faster-than-expected decline in global inflation due to resolving supply-side issues and restrictive monetary policies. Global headline inflation is anticipated to drop to 5.8% in 2024 and further to 4.4% in 2025.
Despite challenges, including China’s property sector issues and potential disruptive fiscal policies, the report highlighted balanced risks to global growth. Policymakers are urged to focus on managing inflation, with recommendations for renewed fiscal consolidation and targeted structural reforms to support productivity growth and debt sustainability.
Efficient multilateral coordination is emphasized for debt resolution, climate change mitigation, and avoiding debt distress to facilitate necessary investments.
Credit: NAN
