IMF predicts that Nigeria's GDP will enjoy steady economic growth between now and 2029

INTERNATIONAL Monetary Fund (IMF) officials have predicted that Nigeria’s gross domestic product (GDP) will grow to reach $1.85tn by 2029 in purchasing power parity (PPP) terms from the current $1.365trn as a result of consistent economic growth.

According to the IMF data, Nigeria’s GDP in PPP terms looks set to steadily increase from $1.36tn in 2023 to $1.852tn in 2029. In a surprise development, the IMF  projection suggests a significant growth trajectory, showing a consistent trend, with a notable increase of 5.5% expected in 2029.

GDP is the most commonly used single measure of a country’s overall economic activity, while PPP is a theory that relates changes in exchange rates to alterations in price levels between countries, allowing for more accurate international comparisons of economic data. In addition to this, the IMF also predicted Nigeria’s share of global GDP based on PPP to reach 0.78% by 2029.

This represents a slight increase from 0.77% in 2023, indicating a steady growth trajectory for the country’s economy. Also, the data suggests that Nigeria’s economy is gradually expanding, albeit slowly and is expected to continue this trend over the next five years.

Nigeria's share of global GDP is expected to remain relatively stable, fluctuating between 0.775% and 0.778% in the years 2024 to 2028. Economists believe that this positive outlook is a testament to Nigeria's efforts to diversify its economy, invest in infrastructure and promote foreign investment.

Africa’s largest economy, Nigeria has faced significant challenges in recent years, including a recession in 2020 caused by the Covid-19 pandemic and a decline in oil prices. Nigeria's biggest problem remains her over-dependence on crude oil and successive governments have sought to try and diversify the economy.