The World Bank confirmed yesterday that Nigeria’s economy is expected to grow by 3.3% in 2024, noting that the economy showed some strength early in the year despite economic changes. However, it lowered its 2025 growth forecast for Nigeria to 3.5%, down from the 3.7% predicted in January. Similarly, the forecast for economic growth in Sub-Saharan Africa in 2024 was reduced to 3.0% from the previous 3.8%.
The report highlighted that economic growth in Sub-Saharan Africa weakened to 3.0% in 2023. The three largest economies in the region—Nigeria, South Africa, and Angola—experienced sluggish growth. In early 2024, private sector activities increased, supported by a stronger global economy.
Many economies in the region continue to face challenges with weak government finances due to low revenue collection and high debt-service costs, along with the negative impact of currency depreciations. In Nigeria, growth slowed to 2.9% in 2023, but the economy showed some resilience early in 2024 despite ongoing economic adjustments.
Growth in Sub-Saharan Africa is expected to rise from 3.0% in 2023 to 3.5% in 2024 and around 4% annually in 2025-26. This is anticipated as inflation decreases, allowing for lower interest rates that will boost private consumption and investment.
Growth in the region’s three largest economies is projected to increase from 1.8% in 2023 to 2.4% in 2024 and average 2.6% in 2025-26, which is below the region’s overall average growth. Economies without significant natural resources are expected to grow faster than their historical average, while resource-rich economies are recovering from the slow growth in 2023 caused mainly by falling metal prices.
