The 2024 United Nations World Economic Situation and Prospects report predicts a slowdown in global GDP growth. It is projected to decrease from an estimated 2.7 percent in 2023 to 2.4 percent in 2024, before improving moderately to 2.7 percent in 2025. However, these growth projections fall short of the pre-pandemic growth rate trend of 3.0 percent.
In Africa, economic growth is expected to remain weak, with an increase from an average of 3.3 percent in 2023 to 3.5 percent in 2024. Unfortunately, debt sustainability concerns, stricter fiscal and monetary policies, and the weak global economy will continue to hinder Africa’s development prospects. Additionally, the region has been affected by extreme weather conditions and the growing climate catastrophe, impacting tourism and agricultural productivity. Geopolitical unrest has also had a negative impact on several African countries.
On a positive note, policy reforms implemented by the Government of Nigeria in 2023, particularly in the hydrocarbon sector, have contributed to a moderate improvement in the country’s growth prospects for 2024. The GDP growth forecast for Nigeria stands at 3.1 percent. However, rising public debt, persistent inflation, insecurity, and a weak business environment pose downward risks to growth prospects.
To build a more resilient and diverse economic base, it is crucial to invest in technology, manufacturing, and services. Simultaneously, the government should prioritize infrastructure development to address bottlenecks and attract foreign investment. Implementing appropriate fiscal policies, managing debt sustainability, and enhancing governance will also instill confidence among domestic and foreign investors.