The International Monetary Fund (IMF) has predicted that Nigeria’s economy will expand faster than several advanced nations, including the United Kingdom and the United States, in 2025.
According to the IMF’s latest World Economic Outlook released on Tuesday, Nigeria’s Gross Domestic Product (GDP) growth forecast has been revised upward from 3.0% to 3.4%.
This new projection places Nigeria ahead of the UK (1.2%), the US (1.9%), Germany (0.1%), and Canada (1.6%) in terms of expected economic performance.
The IMF credited the upgrade to ongoing macroeconomic reforms in Nigeria and the country’s economic resilience amid global uncertainty.
“This upward revision reflects Nigeria’s ongoing macroeconomic reforms and the resilience of its economy despite global headwinds,” the report stated.
The positive forecast comes on the heels of a GDP rebasing by the National Bureau of Statistics (NBS), which updated Nigeria’s GDP to N372.8 trillion ($243 billion) for 2024, up from N314.02 trillion in 2023.
The revision incorporated a wider range of informal economic activities, boosting the credibility and scope of Nigeria’s economic data.
Despite the promising outlook, Nigeria remains the fourth-largest economy in Africa, trailing South Africa, Egypt, and Algeria.
However, the IMF’s report suggests growing investor confidence in Nigeria’s economic direction.
Other emerging economies also saw upward revisions: China’s forecast rose from 4.0% to 4.8%, India’s from 6.2% to 6.4%, Brazil’s from 2.0% to 2.3%, and Mexico’s from -0.3% to 0.2%.
The IMF attributed the improved global outlook to a combination of factors including lower-than-expected US tariffs, better financial conditions, fiscal expansion in key economies, and a weaker US dollar.
Global growth is now projected at 3.0% in 2025, up from the previous estimate of 2.8%, offering a cautiously optimistic view of the world economy going into the new year.
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