- IMF cuts
- Nigeria’s economy recorded slow growth in the second quarter of 2018 as oil sector contracted by 3.95%.
The International Monetary Fund (IMF) has cut Nigeria's economic growth projections from 2.1% to 1.9% for 2018 due to poor performance.
In its World Economic Outlook report released in July 2018, the Bretton Wood Institution had projected that Nigeria’s economy would grow by 2.1% in 2018 and 2.3% in 2019.
Gian Maria Milesi-Ferretti, deputy director at IMF’s research department stated this on Tuesday, October 9, 2018, at the annual meetings of the International Monetary Fund and World Bank Group in Bali, Indonesia.
Ferretti said the three largest economies of Nigeria, South Africa and Angola are holding down the growth rate of the continent.
He said, “Nigeria’s growth, 1.9% this year; 2.3% next year. South Africa, only 0.8% this year. Angola, contracting by 0.1% this year. So the aggregate - over 3% this year, close to 4% next year - is despite the largest economies in the continent doing poorly.
“The continent could do much better once these economies are on a more solid footing, particularly South Africa and Nigeria because they are really large and affect a number of countries in their neighbourhood.”
“In Nigeria and Angola, tighter monetary policy and moderation in food price increases contributed to tapering inflation. In Nigeria, inflation is projected to fall to 12.4% in 2018, from 16.5% in 2017, and to rise to 13.5% in 2019,” the report read.
World Bank says there is sluggish economic expansion in Nigeria, Angola and South Africa
IMF's projection is coming barely a week after the World Bank cut growth in Sub-Saharan Africa from 3.1% in 2018 to 2.7%.
The World Bank also attributed the cut to sluggish economic expansion in Nigeria, Angola and South Africa, the three largest economies in Africa.
The World Bank said Nigeria and Angola are currently experiencing lower oil production while weak household consumption growth compounded by a contraction in agriculture negate South African economy.
Nigeria’s economy record slow growth in Q2
Nigeria’s economy recorded slow growth in the second quarter of 2018 as oil sector contracted by 3.95% compared to 14.77% growth in the first quarter and 3.53% year-on-year.
For the first time since the exit from recession, growth was driven by the non-oil sector which grew by 2.05%, the strongest growth since the first quarter of 2015.
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