The International Monetary Fund (IMF) has released its Global Economic Outlook report, saying that inflation rates in Nigeria will decline by 23 per cent in 2025.
IMF’s report disclosed that there has been a great increase in Nigeria’s inflation rates due to economic reforms, including exchange rate adjustments.
In March, the inflation rate rose to 33.2 percent, with food inflation increasing to over 40 percent in the first quarter of 2024.
However, the IMF predicted that inflation will decline to 23 percent next year and then drop to 18 percent by 2026, thanks to tight monetary policies and interest rate increases during February and March.
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Nigeria’s economic growth was expected to rise from 2.9 per cent in 2023 to 3.3 per cent in 2024, attributed to the recovery in the oil sector, improved security, and advancements in agriculture due to better weather conditions and the introduction of dry season farming.
The IMF officials also revealed a broad-based increase in Nigeria’s financial and IT sectors.
The report highlighted the need for countries to bring inflation back to target levels, as inflation has a significant impact on the overall economy.
It also warned of the risks posed by geo-economic fragmentation to global growth prospects and the need for careful calibration of monetary policy.
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