Nigeria's projected GDP growth for 2022 has been lowered by the International Monetary Fund (IMF) to 3.2 percent.
In comparison to the 3.4 percent forecast in its July 2022 report, the development is 0.2 percentage points lower.
This information was released on Tuesday by the Washington-based organisation in its World Economic Outlook (WEO) for October 2022, which was headed "Countering the Cost-of-Living Crisis."
In the study, the economic growth forecast for sub-Saharan Africa was revised downward from 3.8% to 3.6% due to tighter financial and monetary conditions.
TheCable infers that when countries deploy fiscal and monetary tools to control growing food costs, economic activity will slow down in Nigeria and around the world.
“In sub-Saharan Africa, the growth outlook is slightly weaker than predicted in July, with a decline from 4.7 percent in 2021 to 3.6 percent and 3.7 percent in 2022 and 2023, respectively — downward revisions of 0.2 percentage points and 0.3 percentage points, respectively,” the report said.
“This weaker outlook reflects lower trading partner growth, tighter financial and monetary conditions, and a negative shift in the commodity terms of trade.”
Unlike sub-Saharan Africa, the report projected that growth in the Middle East and Central Asia would increase to 5.0 percent in 2022.
According to IMF, this reflects “a favourable outlook for the region’s oil exporters and an unexpectedly mild impact of the war in Ukraine on the Caucasus and Central Asia”.
“In 2023, growth in the region is set to moderate to 3.6 percent as oil prices decline and the headwinds from the global slowdown and the war in Ukraine take hold,” it added.
Overall, IMF said global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023.