The International Monetary Fund (IMF) has upgraded its outlook for Nigeria’s economic growth at 2.7 per cent for 2022.
This medium previously reported that the IMF maintained 2.5 per cent projection for Nigeria’s economic growth in 2021 and its projection for the country’s economic growth in 2022 stood at 2.6 per cent. This represents a three basis point upgrade from the 2.3 per cent earlier projected in April.
This medium observed that the organisation also maintained 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 downward revision for 2021 reflects a downgrade for advanced economies—in part due to supply disruptions—and for low-income developing countries, largely due to worsening pandemic dynamics.
This is partially offset by stronger near-term prospects among some commodity-exporting emerging market and developing economies. Rapid spread of Delta and the threat of new variants have increased uncertainty about how quickly the pandemic can be overcome. Policy choices have become more difficult, with limited room to maneuver.
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.”