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IMF may revise Nigeria’s economic growth forecast, sees 2.5% GDP in 2021

By on March 24, 2021 0 194 Views

The International Monetary Fund (IMF) is likely to raise its economic growth forecast for Nigeria, its mission chief has said.

Jesmin Rahman, the IMF mission chief to Nigeria, said the country’s surprise exit from recession in the fourth quarter would aid its economic outlook for the coming year.

“It wasn’t as bad as we expected,” Rahman said of the country’s 2020 recession.

Rahman did not put a figure on the 2021 growth overall but said the medium-term growth rate could return to 2.5   percent.

The IMF previously projected 1.5 percent growth for 2021.

Nigeria’s economy exited recession in the fourth quarter of 2020 with marginal growth of 0.11 percent.

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The sudden exit of the country from the recession has threw spanner into analysts calculation, forcing many of them to go back to the drawing board to review their position on the economy.

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele said on Tuesday that the country’s economy is expected to sustain it growth trajectory this year.

“Available data and forecasts for key macroeconomic variables for the Nigerian economy suggest a further rebound in output growth for the rest of 2021.

“This is predicated on the sustained, as well as additional interventions by the monetary and fiscal authorities to keep up the recovery momentum in the economy, favourable upsurge in crude oil prices, foreign exchange market stability and successful deployment of the new COVID-19 vaccines that could further stimulate economic activities and ultimately boost output growth,” the CBN Governor stated on Tuesday.

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