Considering the policy attempts made by the Economic Team set up by President Buhari as well as the various fund-raising attempts to stimulate the Nigerian economy, the International Monetary Fund has come out to say that the prospects of economic growth in the country in 2017 has dimmed.
In an earlier report, the lender had projected that the Nigerian economy would expand by 1.1% in 2017 but however revised that projection in its latest World Economic Outlook Report released Tuesday. The new expectation is that the Nigerian economy will expand by 0.6% in 2017, lower than the 1.1% earlier touted.
The IMF did not leave without stating reasons why it reduced the growth expectation of the economy. Punch reports that the IMF blamed the cut in the growth forecast for next year on militancy in the Niger Delta resulting in temporary disruptions to oil production and foreign-currency shortages due to a fall in crude receipts, lower power generation and weak investor confidence.
The Nigerian economy was not the only one to receive a downgrade as sub-Saharan Africa’s second economic giant, South Africa also had its growth expectation reduced by 0.2%. “Momentum in South Africa was flat, despite the improvements in the external environment. There will be only a modest recovery next year as the commodity and drought shocks dissipate and power supply improves.” IMF says.
