Nigeria’s 2020 Economic Outlook down by 5.4 percent, says IMF

*Projects economy to experience a recovery of 2.6% in 2021

Isola Moses | ConsumerConnect

Against the backdrop of the comparatively slow economic recovery induced by the novel Coronavirus (COVID-19) pandemic, the International Monetary Fund (IMF) has downgraded its expectations for the Nigerian economy in the 2020 fiscal year.

Report says the IMF reeled off the latest projections Wednesday, June 24 during a presentation on the release of the June 2020 World Economic Outlook.

It was learnt the World Bank outlook indicates that country’s Gross Domestic Product (GDP) will shrink by 5.4 percent in the year.

It is recalled that the IMF in April 2020, had projected a 3.4 percent decline in GDP but looking at current realities, it feels otherwise.

Yet, the global financial institution Wednesday, June 24 said the economy would experience a recovery of 2.6% in 2021 which is an improvement of 200 basis points when compared to the 2.4 percent April projection for 2021.

The Fund further disclosed that the global economy in 2020 and 2021 would further contract by 4.9 percent and three per debt respectively.

This represents a downgrade from its April projection of three percent contraction in 2020 and a recovery of 2.2  percent in 2021.

“Compared to our April World Economic Outlook forecast, we are now projecting a deeper recession in 2020 and a slower recovery in 2021.

“We are projecting a synchronised deep downturn in 2020 for both advanced economies and emerging markets and developing economies.

“The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast,” stated the Fund.

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