IMF revises Nigeria’s economic growth upward to 2.5% for 2021
The International Monetary Fund (IMF) has revised its projection for the Nigerian economy to 2.5 percent growth this year from 1.5 percent projected early in January.
In its April World Economic Outlook report, IMF also forecast a 3.4 percent growth for the Sub-Saharan Africa region in 2021.
The Fund had projected a 3.2 percent growth for the region in its earlier outlook forecast.
“Following a sharp drop in 2020, only a mild and multispeed recovery is expected in Latin America and the Caribbean in 2021. Thanks to the global manufacturing rebound in the second half of 2020.
“Growth exceeded expectations in some large exporting countries in the region (for example, Argentina, Brazil, Peru) bringing the 2021 forecast to 4.6 percent (a 1 percentage point revision).
Nigeria’s economy rebound from a negative growth in the third quarter of 2020 to a positive growth of 0.11 percent in the fourth quarter, ensuring the country exited recession faster than projected.
“The longer-term outlook continues to depend on the path of the pandemic, however. With some exceptions (for example, Chile, Costa Rica, Mexico), most countries have not secured enough vaccines to cover their populations.
“Moreover, 2021 projections for the tourism-dependent Caribbean economies have been revised down by 1.5 percentage points to 2.4 percent.
“The pandemic continues to exact a large toll on sub-Saharan Africa (especially, for example, Ghana, Kenya, Nigeria, South Africa). Following the largest contraction ever for the region (–1.9 percent in 2020), growth is expected to rebound to 3.4 percent in 2021, significantly lower than the trend anticipated before the pandemic. Tourism-reliant economies will likely be the most affected,” The Fund stated.