IMF Downgrades Nigeria’s 2016 Economic Growth to -1.8%, Forecasts Recession

The International Monetary Fund (IMF) has again revised growth projections for Nigeria and other sub-Saharan African countries, saying that the Africa’s largest economy will probably contract by 1.8 percent this year.

In an update on its latest World Economic Outlook (WEO), the IMF said on Tuesday that the Nigerian economy would now grow at a much slower pace than South Africa’s, which is expected to grow at 0.1 percent in 2016.

The Nigerian economy will contract for the first time in more than two decades as it “adjusts to foreign-currency shortages as a result of lower oil receipts, lower power generation and weaker investor confidence,” the IMF said.

The latest update as made known by Maury Obstfeld, IMF economic counsellor and director of the research department in a speech titled ‘A spanner in the works: WEO Update Opening Statement’ that the Brexit vote had thrown a spanner in economic growth.

The international organization also trimmed India’s GDP growth to 7.4% for 2016-17,
UK’s growth forecast to 1.3% from 2.2% on Brexit .