The World Bank has revised its economic growth forecast for Nigeria and other sub-Saharan African countries, projecting a stronger expansion of 3.8% in 2025, driven by easing inflation and more stable macroeconomic conditions.
This upgrade follows recent monetary policy adjustments, including the Central Bank of Nigeria’s decision last month to lower its benchmark interest rate from 27.5% to 27%, signaling a shift toward more accommodative policies.
The World Bank’s latest Africa Pulse report highlights improved growth prospects for key economies in the region, including Nigeria, Ethiopia, and Ivory Coast. It notes that real incomes are also rising more rapidly this year and are expected to continue on an upward trajectory over the next two years.
“While this marks a gradual recovery from a decade of successive shocks, the rebound has yet to gather strong momentum,” the report stated.
The growth forecast, previously set at 3.5% in April, has been raised due to stabilizing foreign exchange markets and inflation rates, particularly in countries like Ethiopia, allowing central banks room to cut interest rates.
Looking ahead, the World Bank projects regional growth will average 4.4% annually over the next two years, slightly above the earlier estimate of 4.3%.
Out of the 47 economies in sub-Saharan Africa monitored by the Bank, 30 countries saw upward revisions in their growth outlook, reflecting improving economic conditions across much of the continent.
