The World Bank has reaffirmed its forecast that Nigeria's economy will grow by 3.6% in 2025, supported by domestic reforms and improving investor confidence, even as it slashed global growth projections due to rising trade tensions and policy uncertainties.
In its latest Global Economic Prospects report, the bank noted that despite a global growth downgrade to 2.3% for 2025, Nigeria's services sector particularly financial services and ICT will continue to drive expansion. It attributed the positive outlook to earlier monetary tightening and a gradual decline in inflation.
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However, Nigeria's industrial sector remains subdued due to weak crude oil output. The bank also warned that while sub-Saharan Africa (SSA) may be shielded from direct trade war impacts due to limited exposure to the US and China, the region could still suffer from broader global slowdowns, commodity price drops, and reduced aid.
The report also raised red flags over high public debt servicing costs, rising violence, and climate-related disruptions across SSA. Per capita income in the region is expected to grow modestly at 1.6% annually between 2025–2027, with poverty and job creation challenges persisting unless structural reforms are deepened.
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