…Global growth prospects are weak, especially for emerging market and developing economies.
…In sub-Saharan Africa, the IMF forecasts growth is to decline to 3.3 percent
…It reiterated global growth forecast of 3.0 percent in 2023 and projected lower growth of 2.9 percent in 2024.
TUE, OCT 10 2023-theGBJournal| The International Monetary Fund (IMF) Tuesday released its latest World Economic Outlook, projecting Growth in Nigeria to decline from 3.3 percent in 2022 to 2.9 percent in 2023 and 3.1 percent in 2024, with negative effects of high inflation on consumption taking hold.
The forecast for 2023 is revised downward by 0.3 percentage point, reflecting weaker oil and gas production than expected, partially as a result of maintenance work.
In sub-Saharan Africa, the IMF forecasts growth is to decline to 3.3 percent in 2023 before picking up to 4.0 percent in 2024, with 0.2 percentage point and 0.1 percentage point downward revisions for 2023 and 2024, respectively, and with growth remaining
below the historical average of 4.8 percent.
The IMF said the projected decline reflects, in a number of cases, worsening weather shocks, the global slowdown, and domestic supply issues, including, notably, in the electricity sector.
It reiterated global growth forecast of 3.0 percent in 2023 and projected lower growth of 2.9 percent in 2024.
”The projections remain below the historical (2000–19) average of 3.8 percent, and the forecast for 2024 is down by 0.1 percentage point from the July 2023 Update to the World Economic Outlook,” IMF said.
The IMF noted that the global recovery from the COVID-19 pandemic and Russia’s invasion of Ukraine remains slow and uneven.
”Global growth prospects are weak, especially for emerging market and developing economies. The implications are profound: a much slower convergence toward the living standards of advanced economies, reduced fiscal space, increased debt vulnerabilities and exposure to shocks, and diminished opportunities to overcome the scarring from the pandemic and the war,” IMF Chief Economists Pierre-Olivier Gourinchas, said while analysing the several headwinds to growth.
He added: ”Multilateral cooperation can help ensure countries achieve better growth outcomes. Countries should avoid implementing policies that contravene World Trade Organization rules and distort international commerce. And countries should safeguard the flow of critical minerals, needed for the climate transition, and of agricultural commodities. Such “green corridors” would help reduce volatility and accelerate the green transition.”
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