Imf cuts nigerias 2019 growth forecast to 2
According to the International Monetary Fund (IMF), Nigeria's economic growth forecast for 2019 has been cut to 2%. This is a downward revision from the previous forecast of 2.3% growth.
The IMF attributed the revision to a number of factors, including:
- Lower oil prices: The decline in global oil prices has reduced Nigeria's oil revenue, which is a significant contributor to the country's economy.
- Weak non-oil sector: The non-oil sector, which accounts for a significant portion of Nigeria's economy, has been experiencing a slowdown due to a number of factors, including a decline in agricultural production and a contraction in the manufacturing sector.
- Security challenges: The ongoing security challenges in some parts of the country, particularly in the north-east, have also had a negative impact on economic activity.
The IMF also noted that the country's fiscal deficit has increased, which has put pressure on the government's finances and has limited its ability to implement policies to stimulate economic growth.
It's worth noting that the IMF's forecast is not the only one, and other organizations and analysts have also made similar predictions about Nigeria's economic growth prospects. However, the IMF's forecast is widely followed and is often seen as a benchmark for the country's economic performance.
Here are some key points from the IMF's report:
- Nigeria's GDP growth is expected to slow to 2% in 2019, down from 2.3% in 2018.
- The country's fiscal deficit is expected to widen to 2.3% of GDP in 2019, up from 1.7% in 2018.
- The IMF has recommended that the Nigerian government implement policies to improve the business environment, increase investment, and reduce corruption in order to stimulate economic growth.
Overall, the IMF's forecast suggests that Nigeria's economy is facing significant challenges, and that the country will need to implement policies to address these challenges in order to achieve sustainable economic growth.