The International Monetary Fund (IMF) recently unveiled its Global Economic Outlook during the IMF/World Bank Spring Meetings in Washington D.C., highlighting significant shifts in inflation rates.
Daniel Leigh, Division Chief of the Research Department at the IMF, discussed the impact of Nigeria's economic reforms on inflation. He noted that the inflation rate climbed to 33.2 percent in March, driven by exchange rate fluctuations.
The National Bureau of Statistics confirms that Nigeria's inflation rate has hit 33.2 percent, with food inflation exceeding 40 percent in the first quarter of 2024.
"We anticipate inflation will decrease to 23 percent next year and further to 18 percent by 2026," Leigh stated. However, the IMF's previous year's forecast was an even lower inflation rate of 15.5 percent by 2025.
Leigh also commented on Nigeria's economic growth, projecting an increase from 2.9 percent last year to 3.3 percent this year, thanks to improvements in the oil sector, better security, and advancements in farming due to favorable weather and innovative methods.
He added that Nigeria's financial and IT sectors are experiencing growth.
Pierre Olivier Gourinchas, another IMF official, offered insights into the global economy, noting that oil prices are rising due to international tensions, and service inflation remains high across various regions.
Despite Nigeria's failure to keep inflation within the six to nine percent target for over a decade, Gourinchas emphasized the need to prioritize inflation control.
He pointed out the risks to the global economy stemming from international disputes and urged governments to manage finances prudently.
"International trade is evolving, and while it may benefit some nations, it could potentially weaken the global economy," Gourinchas remarked.
He also underlined the essential need for countries, particularly those in the phase of growth, to possess robust money, tax, and banking systems in order to uphold global economic strength and prevent the resurgence of inflation.
