The International Monetary Fund (IMF) has revised upward its growth forecast for the Nigerian economy in 2021 to 2.5 per cent from its earlier projection of 1.5 per cent it announced in January.
The IMF announced the new projection in its World Economic Outlook update released on Tuesday.
The new growth projection is 1.0 per cent higher than the multilateral institution’s 2021 forecast in January. January’s forecast was a downward review from the forecast it shared in October 2020.
The Nigerian economy exited recession in the fourth quarter of 2020 with a modest 0.11 per cent growth.
Sub-saharan Africa
The IMF also projected that in sub-Saharan Africa, growth will strengthen to 3.4 per cent in 2021, 0.2 per cent higher than the previous forecast.
The IMF expects the world economy to grow by 6 per cent in 2021, up from its 5.5 per cent forecast in January, a stronger economic recovery in 2021 as Covid-19 vaccine rollouts get underway.
It, however, warns of “daunting challenges” given the different rates of administering shots across the globe.
“Global prospects remain highly uncertain one year into the pandemic. New virus mutations and the accumulating human toll raise concerns, even as growing vaccine coverage lifts sentiment. Economic recoveries are diverging across countries and sectors, reflecting variation in pandemic-induced disruptions and the extent of policy support,” the IMF said in a statement.
Credit: premiumtimesng.com
The post IMF increases Nigeria’s 2021 economic growth forecast appeared first on The Chronicle Online.
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