The Niger economy has recorded its strongest growth since nearly a decade in 2025, but beneath the progress of 4.9% GDP appears an important divergence: investment surged by 16.3%, while household consumption increased only 1.2%.

Investment drives economic growth

The Niger economy is largely driven by large investments, far less so by daily expenses from households. This is one of the findings of the latest Economic Situation Report in Niger published by the World Bank.

The role of infrastructure projects

Investment grew by 16.3% in 2025, following a significant increase of 14% in 2024. The acceleration is mainly linked to large public infrastructure projects, particularly those undertaken within the framework of the preparation for the 2030 World Cup.

Public spending accelerates

The construction sector recorded growth of 6.7%. The World Bank also notes a progressive recovery in private investments. Since the pandemic, investments and public consumption have consistently increased faster than nominal GDP.

Household savings lag behind

Household spending, on the other hand, has taken a very different path. It grew by 4.7% in 2023, before slowing down to 3% in 2024 and then only 1.2% in 2025.

A growing gap between investment and consumption

Household savings therefore have not reduced their spending, but it has progressed much less than investments and the overall economy. This slowdown occurs even though inflation has fallen to 0.8% in 2025 and household confidence is starting to recover.

A turning point on the horizon

The World Bank expects a progressive rebalancing. The current investment cycle should mature in the coming years, allowing more room for consumption and private sector activity.