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IMF maintains 2.5% economic growth projection for Nigeria in 2021

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The International Monetary Fund (IMF) has 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.

Techeconomy.ng obtained this from the IMF’s latest edition of the World Economic Outlook released on Tuesday, July 27.

This medium 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.

The IMF retained its forecast for the sub-Saharan economic region for 2021 and 2022 at 3.4 per cent and 4.1 per cent respectively.

According to it, “The 2021 forecast for sub-Saharan Africa is unchanged relative to the April WEO, with an upgrade for South Africa following a strong positive surprise in the first quarter offset by downward revisions in other countries.

“The worsening pandemic developments in sub-Saharan Africa are expected to weigh on the region’s recovery.”

The IMF, however, called for multilateral action to diminish divergences and strengthen global prospects.

It said: “The immediate priority is to deploy vaccines equitably worldwide. A $50 billion IMF staff proposal, jointly endorsed by the World Health Organization, World Trade Organization, and World Bank, provides clear targets and pragmatic actions at a feasible cost to end the pandemic. Financially constrained economies also need unimpeded access to international liquidity.

“The proposed $650 billion General Allocation of Special Drawing Rights at the IMF is set to boost reserve assets of all economies and help ease liquidity constraints.

“Countries also need to redouble collective efforts to reduce greenhouse gas emissions. These multilateral actions can be reinforced by national-level policies tailored to the stage of the crisis that help catalyze a sustainable, inclusive recovery.

“Concerted, well-directed policies can make the difference between a future of durable recoveries for all economies or one with widening fault lines—as many struggle with the health crisis while a handful see conditions normalize, albeit with the constant threat of renewed flare-ups.”

 

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