(Ecofin Agency) - In 2023, Niger’s poverty rate reached 52% due to negative per capita growth and rising inflation. The World Bank estimates that 14.1 million people were living in extreme poverty, compared to 1.1 million in 2022.

The World Bank expects Niger’s poverty rate to decline to 42.5% by 2026, according to a report on the country’s economic and poverty trends published on September 30, 2024.

This reduction is based on strong agricultural production and increased oil revenue, which the Bank emphasizes must be effectively used to benefit the population. In 2023, Niger’s poverty rate reached 52%, largely due to negative per capita growth and rising inflation. This increase followed a drop in poverty between 2021 and 2022.

Economic sanctions imposed after the coup that ousted President Mohamed Bazoum played a role in Niger's economic struggles. The sanctions included border closures, frozen service transactions, and the suspension of regional financing, which impacted public services and electricity. These actions severely reduced economic activity.

However, since the sanctions were lifted on February 24, 2024, and financing was partially restored, Niger’s economy has rebounded. The World Bank predicts growth will rise to 5.7% this year, up from 2% in 2023. This recovery is expected to be driven by oil exports, following disruptions caused by tensions with Benin, whose port serves as a key export route via the Benin-Niger oil pipeline.

Despite the World Bank’s growth forecast, its outlook remains modest compared to the International Monetary Fund (IMF). The IMF projects Niger’s economy will grow by 10.6% this year.