26.2 C
Lagos
Wednesday, October 27, 2021

IMF sees Nigeria’s economic growth at 2.5% this year, inflation down to 15.5%

- Advertisement -spot_imgspot_img
- Advertisement -spot_imgspot_img

By Oludare Mayowa

The International Monetary Fund (IMF) has projected that Nigeria’s economy could reach 2.5 percent in 2021 as incipient recovery in the economic activity takes root.

The Fund said in a statement after Staff Concludes Virtual visit with Nigeria that, inflation is also expected to remain elevated in 2021.

However, the IMF said that inflation rate may likely decelerate in the second half of the year to reach about 15.5 percent.

READ ALSO: Nigeria’s bourse rebounds marginally, as All-Share index rises 15bps

It hinged its projection on inflation around the likely positive impact of the removal of border controls and the elimination of base effects from elevated food price levels.

“The incipient recovery in economic activity is projected to take root and broaden among sectors, with GDP growth expected to reach 2.5 percent in 2021.

“Inflation is expected to remain elevated in 2021, but likely to decelerate in the second half of the year to reach about 15.5 percent, following the removal of border controls and the elimination of base effects from elevated food price levels,” the IMF wrote in the statement.

- Advertisement -spot_imgspot_img
Latest news
- Advertisement -spot_img
Related news
- Advertisement -spot_img