Nigeria’s economy to grow by 3.4 per cent this year, IMF affirms

Nigeria’s economy to grow by 3.4 per cent this year, IMF affirms

The International Monetary Fund (IMF) projects that Nigeria’s economy will grow by 3.4% in 2025,but this growth is expected to slow to 3.2% in 2026.This forecast reflects a degree of confidence in Nigeria’s ongoing economic reforms. For Sub-Saharan Africa, the IMF expects growth of 4.0% in 2025, rising slightly to 4.3% in 2026.

Globally, the IMF forecasts a 3.0% growth rate in 2025 and 3.1% in 2026,both slightly higher than earlier predictions made in April 2025. This improved global outlook is attributed to factors such as anticipation of higher tariffs, reduced average effective U.S. tariff rates, better financial conditions, a weaker U.S. dollar, and fiscal expansion in key economies.

The IMF also expects global headline inflation to decline to 4.2% in 2025 and 3.6% in 2026,with inflation remaining above target in the U.S. but relatively subdued in other major economies.

For emerging markets and developing economies, growth is forecast at 4.1% in 2025 and 4.0% in 2026. China,in particular, saw its 2025 growth forecast revised upward by 0.8 percentage points to 4.8%,driven by stronger-than-expected economic performance in early 2025 and a significant reduction in U.S.-China tariffs. As a result, China’s 2026 growth forecast was also adjusted upward to 4.2%.

The report cautions that geopolitical tensions and trade uncertainties could disrupt supply chains further and increase the cost of imported goods globally.