Nigeria’s economic growth for 2019 was on Tuesday revised by the International Monetary Fund. The global monetary cooperation raised Nigeria’s growth forecast by 0.3 percent. However, despite the increase, Nigeria and other emerging markets continue to pose risk to global economic growth.
In line with the new forecast, the IMF believes that Nigeria’s economy will grow by 2.3 percent by the end of 2019. In the meantime, the 2020 growth has been put at 2.6 percent. This is according to the IMF World Economic Outlook for the month of July.
Nairametrics had previously reported that the IMF revised Nigeria’s economic growth forecast for the period under review, trimming it down to 2.1 in June. Before then, the IMF had predicted a 2.2 percent growth for Nigeria’s economy in 2019.
The monetary fund had blamed the June downgrade on;
- Slower-than-expected mining
- Slower oil production,
- Domestic policy uncertainties.
It was stated then that the aforementioned will delay the growth recovery in some of the largest commodity exporters such as Angola, Nigeria, South Africa, and other Sub-Saharan African countries.
Nigeria is a risk to global growth: Nigeria and other emerging economies will pose risks to global growth, Nairametrics learned. The IMF July report which was titled, “Sluggish global growth call for supportive policies”, has shown that the growth of global economy weighs heavily on emerging economies.
The IMF had earlier forecast 0.1 percent for the global growth in 2019 and 2020. But according to the report, the 2019 growth is now set for 3.2 percent, while 2020 growth is fixed at 3.5 percent.
In the meantime, about 70 percent of the global growth is hinged on the emerging market and developing economies. The report also stated that global growth would have been better if not for self-inflicted policies and policy uncertainty. However, contributing factors include trade and technology tensions among advanced economies.
“Global growth is sluggish and precarious, but it does not have to be this way because some of this is self-inflicted.
“We are revising downward our projection for global growth to 3.2 per cent in 2019 and 3.5 per cent in 2020. While this is a modest revision of 0.1 percentage points for both years relative to our projections in April, it comes on top of previous significant downward revisions.
“The revision for 2019 reflects negative surprises for growth in emerging market and developing economies that offset positive surprises in some advanced economies.
“Dynamism in the global economy is being weighed down by prolonged policy uncertainty as trade tensions remain heightened despite the recent US-China trade truce, technology tensions have erupted threatening global technology supply chains, and the prospects of a no-deal Brexit have increased.”