Nigeria’s Economy to Rise by 0.8 Percent After Recession-IMF


International Monetary Fund (IMF)


By Ese Awhotu with agency report

The International Monetary Fund (IMF), has forecast an economic growth rate of 0.8 percent for Nigeria this year, affirming that the growth rate is occasioned by a recovery in oil production, continued growth in agriculture, and higher public investment,

The IMF also raised global economic growth projection for 2017 to 3.5 per cent from the 3.4 per cent it had forecast in January.

This was contained in IMF’s Global Financial Report April 2017 released during a media briefing at the ongoing World Bank/IMF Spring Meetings in Washington.

In this podcast, IMF Chief Economist Maurice Obstfeld says global growth is gaining momentum, as the report also forecast a slide of 0.4 per cent growth for Nigeria in 2018 to 1.5 per cent from the 1.9 per cent it had earlier projected, although global economy is expected to increase its growth rate by 0.01 per cent to hit 3.6 per cent in 2018.

IMF’s Year-on-Year projection for Nigeria for 2017 and 2018 remains unchanged at 0.8 per cent and 1.9 per cent respectively.

According to the report, “After contracting by 1.5 percent in 2016 because of disruptions in the oil sector coupled with foreign exchange, power, and fuel shortages, output in Nigeria is projected to grow by 0.8 per cent in 2017 as a result of a recovery in oil production, continued growth in agriculture, and higher public investment.”

Recall that, President Muhammadu Buhari recently launched Nigeria’s Economic Growth and Recovery Plan for a period of three years, covering 2017 to 2020.

The launch took place at the Council Chamber of the Presidential Villa, Abuja.

The plan, contains 60 critical initiatives expected to help get Nigeria out of recession and reposition it on the path of sustained growth.

It also focused on five execution priorities, which are central to achieving the 7% growth projected by the end of the Plan period.

However, on the global note, the IMF report stated, “The economic upswing that we have expected for some time seems to be materialising: indeed, the World Economic Outlook (WEO) raises its projection for 2017 global growth to 3.5 per cent, up from our recently forecast 3.4 percent,” the report stated.

It warned that these positive developments should not distract from the likelihood of binding structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside, especially over the medium term.

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