BREAKING: IMF Predicts Stronger Growth For Nigerian Economy In Second Half Of 2018
Monetary Fund has just released its World Economic Outlook, WEO for the remainder of
2018 and into 2019.
The fund sees Nigerian economy recording marginal improvement in growth more than what it forecast in April this year.
The updated WEO sent to Bounce News by IMF reads of Nigerian economy: “The upgraded forecast reflects improved prospects for Nigeria’s economy. Its growth is set to increase from 0.8% in 2017 to 2.1% in 2018 and 2.3% in 2019 (0.4 percentage point higher than in the April WEO for 2019) on the back of an improved outlook for oil prices.”
According to the WEO update, “the recovery in Sub-Saharan Africa is set to continue, supported by the rise in ommodity prices”.
And for the entire sub-saharan Africa region, “growth is expected to increase from 2.8% in 2017 to 3.4% this year, rising further to 3.8% in 2019 (0.1 percentage point higher for 2019 than forecast in the April WEO)”.
As for Africa’s second largest economy, South Africa, the IMF said: “Despite the weaker-than-expected first quarter outturn in South Africa (in part due to temporary factors), the economy is expected to recover somewhat over the remainder of 2018 and into 2019 as confidence improvements associated with the new leadership are gradually reflected in strengthening private investment.”
It further noted that emerging market and developing economies have experienced powerful crosswinds in recent months, including “rising oil prices, higher yields in the United States, dollar appreciation, trade tensions, and geopolitical conflict”.
It noted that the outlook for regions and individual economies thus varies depending on how these global forces interact with domestic idiosyncratic factors.
Still on the sub-saharan African region, it said that financial conditions remain generally supportive of growth, though there has been differentiation across countries based on economic fundamentals and political uncertainty.
The further noted that “global (economic) growth is projected to reach 3.9% in 2018 and 2019, in line with the forecast of the April 2018 World Economic Outlook but the expansion is becoming less even, and risks to the outlook are mounting”.
“The rate of expansion appears to have peaked in some major economies and growth has become less synchronized,” it added.