The International Monetary Fund has projected that Nigeria’s economy will expand by 4.1 per cent in 2026 and accelerate to 4.3 per cent in 2027, even as global economic growth is expected to slow to 3.0 per cent next year amid the combined effects of geopolitical conflicts, inflationary pressures, and uneven gains from technological advancement.
The projection is contained in the IMF’s July 2026 World Economic Outlook Update, released on Wednesday and titled, Global Economy in Crosscurrents of War and Technology.
The report forecasts global growth to moderate from an estimated 3.5 per cent in 2025 to 3.0 per cent in 2026 before recovering to 3.4 per cent in 2027.
According to the Fund, Nigeria’s improved outlook is underpinned by stronger macroeconomic stability and favourable terms of trade following recent policy reforms, although persistent increases in the prices of essential goods continue to threaten household welfare.
“Nigeria is supported by improved macroeconomic stability and favourable terms-of-trade effects, though higher prices for essentials are expected to further aggravate poverty and food insecurity,” the IMF stated.
