Nigeria’s Inflation to Drop to 23% by 2025: IMF Forecasts Economic Growth

The International Monetary Fund (IMF) has forecasted a substantial decrease in the country’s inflation rate to 23 percent by 2025.

This projection was announced during the IMF’s Global Economic Outlook at the International Monetary Fund/World Bank Spring Meetings held in Washington D.C. on Tuesday.

The IMF’s Division Chief of the Research Department, Daniel Leigh, highlighted the impact of Nigeria’s economic reforms, including exchange rate adjustments, as contributing factors to the current inflation rate of 33.2 percent in March 2024.

Despite the current inflation challenges, Nigeria’s economic growth is expected to experience a positive trajectory, rising from 2.9 percent last year to 3.3 percent in 2024.

Leigh emphasized the importance of these reforms in driving economic growth and addressing the inflationary pressures affecting the Nigerian economy.

The IMF’s report also indicated that food inflation reached a staggering 40.01 percent in March, reflecting the broader challenges faced by the Nigerian economy in managing inflationary trends.

The IMF’s forecast suggests that inflation will drop to 23 percent in 2025 and further to 18 percent in 2026, indicating a gradual but steady improvement in the country’s economic conditions.

This optimistic outlook is supported by Nigeria’s ongoing efforts to implement economic reforms and address the factors contributing to the current inflationary pressures.

As the country navigates these challenges, the IMF’s projections offer hope for a more stable and prosperous economic future for Nigeria.

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