Nigeria’s economy set to hit $1.85trn by 2029 – IMF

The International Monetary Fund (IMF) has predicted that Nigeria’s economy is expected to reach $1.85 trillion by 2029 in Purchasing Power Parity terms.

The Washington-based International Monetary Fund made this forecast in recent data on Nigeria’s gross domestic product in PPP terms, stating that the country’s GDP will move from $1.36 trillion in 2023 to $1.852 trillion in 2029.

The data shows a consistent growth trend, with a notable increase of 5.5 percent expected in 2029, and also predicts Nigeria’s share of global GDP based on PPP to reach 0.78 percent by 2029.

It said: “This represents a slight increase from 0.77 percent in 2023, indicating a steady growth trajectory for the country’s economy.”

According to the data, Nigeria’s economy is gradually expanding, albeit slowly, and is expected to continue this trend over the next five years, pointing out that the country’s share of global GDP has remained relatively stable, fluctuating between 0.775 percent and 0.778 percent from 2024 to 2028.

According to economists, the positive outlook is a testament to the country’s efforts to diversify its economy, invest in infrastructure, and promote foreign investment.

Nigeria, Africa’s largest economy, has faced significant challenges in recent years, including a recession in 2020 caused by the COVID-19 pandemic and a decline in oil prices.

Persecondnews recalls that the National Bureau of Statistics’ recent data showed that Nigeria’s GDP grew to 2.98 percent in real terms in the first quarter of 2024.

Similarly, the country’s GDP grew by 3.46 percent in Q4 of 2023.

Despite the GDP growth, Nigeria has continued to suffer from a soaring inflation rate, which rose to 33.69 percent in April 2024.

This comes as a ripple effect of the twin policy of fuel subsidy removal and Naira floating in June last year, which continued to affect the prices of goods, services and the purchasing power of Nigerians.