The IMF said global headline inflation is expected to steadily decline from its peak of 8.7 per cent in 2022 (annual average) to 6.9 per cent in 2023
Nigeria’s economic growth is projected to decline from 3.3 per cent in 2022 to 2.9 per cent in 2023, the International Monetary Fund has said.
“The forecast for 2023 is revised downward by 0.3 percentage point, reflecting weaker oil and gas production than expected, partially as a result of maintenance work,” the report said.It said the forecast for 2024 is revised upward by 0.6 percentage points, reflecting higher-than-expected core inflation.
It added that nearly three-quarters of economies are expected to see lower headline inflation in 2023, but the pace of disinflation is especially pronounced for advanced economies. In low-income developing countries, the IMF said inflation is on average projected to be in double digits and is not expected to fall until 2024.
Inflation has remained high in Africa’s largest economy, prompting the apex bank to hike interest rates to their highest levels in nearly two decades.It noted that the option to continue the hike in the policy rate, albeit moderately, also presented a strong alternative premised on the expected liquidity injections into the economy from the recent efforts to unify the nation’s foreign exchange markets.