IMF Projects Nigeria’s GDP To Grow By 2.5% In 2020

BEVERLY HILLS, April 04, (THEWILL) – The International Monetary Fund (IMF) has projected that Nigeria’s real Gross Domestic Product (GDP) will close at 2.1 per cent in 2019 and grow by 2.5 per cent by 2020.

This growth projection is coming from a -1.6 per cent in 2016, 0.8 per cent in 2017 and 1.9 per cent in 2019.

The IMF made the projection in the IMF Executive Board 2019 Article IV consultation with Nigeria released on Wednesday noting the significant improvements in Nigeria’s economic growth trajectory.

“Nigeria’s economy is recovering. Real GDP increased by 1.9 per cent in 2018, up from 0.8 per cent in 2017, on the back of improvements in manufacturing and services, supported by spillovers from higher oil prices, ongoing convergence in exchange rates and strides to improve the business environment,” it stated.

IMF noted that risks were moderately tilted downwards. But on the upside, “oil prices could rise, prompted by global political disruptions or supply bottlenecks. Bold reform efforts, following the election cycle, could boost confidence and investments, especially given relatively conservative baseline projections.”

It noted that, “In addition, long standing structural and policy challenges need to be tackled more decisively to reduce vulnerabilities, raise per capita growth, and bring down poverty. Directors, therefore, urged the authorities to redouble their reform efforts, and supported their intention to accelerate implementation of their Economic Recovery and Growth Plan.”