Experts have spoken on the International Monetary Fund (IMF’s) economic growth projection for Nigeria in 2021, saying it is not substantial.
A professor of economics and public policy at the University of Uyo and the Chairman of the Foundation for Economic Research and Training, Prof. Akpan Ekpo, explained that the Nigerian economy would still undergo a fragile, sluggish recovery.
Ekpo added that with the rate of insecurity and other socio-economic issues, it would be challenging to achieve the projected growth rate.
According to him, “The Nigerian economy is experiencing a fragile, sluggish recovery. The IMF’s forecast, which they keep changing every time, is okay but if we don’t address the security situation in the country, that growth rate will not be realised because investors are worried about the country’s security.
“So, the growth forecast is very tentative. The projected growth still shows that the country will continue to experience a sluggish, fragile recovery, and still be in a state of stagflation because inflation will likely still be the same next year, growth is not that high; unemployment is still very high, especially among youths. The 0.3 percentage increase is very marginal. It is not a big deal.”
On his part, a professor of economics at the Olabisi Onabanjo University, Ogun State, Sheriffdeen Tella, said although the increase was a good sign, the country still had a lot of work to do to reach the forecast.
Tella said: “It is a good sign but I hope we will be able to meet up because the macroeconomic fundamentals are not so good. But in the present circumstances we cannot, especially due to the rate of insecurity in the country. The 0.3 increase is not substantial because the GDP is still low.”
Techeconomy.ng previously reported that the international organisation had maintained 2.5 per cent projection for Nigeria’s economic growth in 2021.
The IMF raised its projection for the country’s economic growth in 2022 to 2.6 per cent. This represents a three basis point upgrade from the 2.3 per cent earlier projected in April.
This medium obtained this from the IMF’s latest edition of the World Economic Outlook released on Tuesday, July 27.
It was observed that the organisation also mainatined its projection for the global economic growth in 2021, at 6.9 per cent, it however upgraded its projection for 2022 by five basis points to 4.9 per cent.