NIAMEY, JUNE 12th, 2025 - Niger¡¯s economy recorded robust growth in 2024, driven by large-scale oil exports. However, short-term sources of growth remain limited and exposed to downside risks, according to the ÐÓ°ÉÂÛ̳'s latest economic update for Niger, published today.
The report analyzes the country's economic, and poverty trends and provides a three-year outlook. A special chapter is dedicated to analyzing Niger¡¯s agri-food system, offering recommendations for its effective transformation.
According to the report, Niger's economy grew by 8.4% in 2024, up from 2% in 2023. This acceleration was primarily fueled by the start of large-scale oil exports and strong agricultural production, supported by favorable weather conditions. Despite high inflation, including rising food prices, sustained growth contributed to a reduction of extreme poverty. Government revenues fell in 2024 due to a decrease in tax revenues ¨C particularly trade-related taxes ¨C leading to a reduction in investment spending. The resulting deficit, combined with a rapid accumulation of debt, led the IMF and ÐÓ°ÉÂÛ̳ to jointly downgrade Niger's debt sustainability risk rating from moderate to high.
¡°Economic growth is expected to remain relatively high in the short-term, but Niger¡¯s sources of growth ¨C oil and rain-fed agriculture ¨C are limited and vulnerable to shocks and volatility,¡± said Han Fraeters, ÐÓ°ÉÂÛ̳ Country Manager for Niger. ¡°Investing in an efficient and resilient agri-food system is crucial if Niger is to achieve long-term, sustainable, and inclusive growth.¡±
Economic growth is projected to slow down in 2025, due to a high base effect from 2024 but is expected to remain above 6%, supported by the continued expansion of the oil sector. Inflation is expected to ease, thanks to the strong 2024 harvest. The extreme poverty rate is project to decline in 2025-2027 if agricultural output remains robust. However, food insecurity will remain a challenge.
¡°If security risks are contained and efforts to expand irrigation are successful, growth could be higher,¡± said Danon Gnezale, Economist at the ÐÓ°ÉÂÛ̳ and co-author of the report. ¡°Several options exist to strengthen the agri-food system, including strengthening value chains and producer organizations, investing in climate-smart agriculture technologies, adopting better regulations, and improving infrastructure.¡±
