The International Monetary Fund (IMF) has downgraded Nigeria’s economic growth projection to 3.2 per cent in 2022.

The development is 0.2 percentage points lower than the 3.4 per cent projected in its July 2022 report.

The Washington-based institution disclosed this yesterday in its World Economic Outlook (WEO) for October 2022 titled, “Countering the Cost-of-Living Crisis”.

The report also downgraded the economic growth projection for sub-Saharan Africa from 3.8 per cent to 3.6 per cent, citing tighter financial and monetary conditions.

By implication, economic activities would slow down in Nigeria and across the world as nations use fiscal and monetary instruments to tame rising food prices.

“In sub-Saharan Africa, the growth outlook is slightly weaker than predicted in July, with a decline from 4.7 per cent in 2021 to 3.6 per cent and 3.7 percent in 2022 and 2023, respectively — downward revisions of 0.2 percentage points and 0.3 percentage points, respectively,” the report said.

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“This weaker outlook reflects lower trading partner growth, tighter financial and monetary conditions, and a negative shift in the commodity terms of trade.”

Unlike sub-Saharan Africa, the report projected that growth in the Middle East and Central Asia would increase to 5.0 per cent in 2022.

According to IMF, this reflects “a favourable outlook for the region’s oil exporters and an unexpectedly mild impact of the war in Ukraine on the Caucasus and Central Asia”.

“In 2023, growth in the region is set to moderate to 3.6 per cent as oil prices decline and the headwinds from the global slowdown and the war in Ukraine take hold,” it added.

Overall, IMF said global growth is projected to slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023.