2021: Nigeria’s Economy to Grow by 1.5%, Not 1.7%, Forecasts IMF
Finance Minister
*Predicts 21% rise in crude oil prices
The International Monetary Fund (IMF) has projected a new growth of 1.5 per cent for the Nigerian economy this year.
The multinational body also projected 21% rebound in crude oil prices this year.
The new forecast is two percent lower than what the monetary agency predicted earlier, which was 1.7percent growth.
In an updated World Economic Outlook (WEO), IMF predicted oil prices could average above 50 per barrel in 2021, more than 21 per cent rise in 2020.
It also predicted that growth in sub-Saharan Africa will reach 3.2 per cent in 2021 and 3.9 per cent in 2022.
It explained that the updated version of its report was as a result of the emergence of the new coronavirus variant that is posing concern to global economy.
The Economic Counselor and Director, Research Department, Ms. Gita Gopinath, who spoke at the virtual event to unveil the WEO report, said up to 90 million people globally will fall below poverty bracket.
She said that it was better for the low income and emerging economies to go for COVID-19 vaccination.
According to her, “Oil exporters and tourism-dependent economies are particularly hard hit and their prospects are severe given that oil prices have a subdued outlook and cross border travel is not expected to resume anytime soon.
“Even within countries, the burden of the crisis has been felt unequally across different groups. Workers with less education, youth and women have suffered disproportionate income losses. 90 million individuals are expected to enter extreme poverty over 2020/2021 reversing the trends of the past two decades.”
She called for support to enable African countries have vaccines, adding that there were many developing countires waiting till 2022 to get vaccines.
She explained, “ it is also very costly for countries that have the vaccines. Which is why we are calling for greater funding for making sure these vaccines are available to poor nations.”
On oil prices, the IMF report said it will average above $50 per barrel this year, which is more than 21 percent rise in 2020.
The report said global Gross Domestic Product (GDP) is expected to grow 5.5 per cent in 2021, after a 3.5 per cent contraction last year.
The International Monetary Fund (IMF) has projected a new growth of 1.5 per cent for the Nigerian economy this year.
The multinational body also projected 21% rebound in crude oil prices this year.
The new forecast is two percent lower than what the monetary agency predicted earlier, which was 1.7percent growth.
In an updated World Economic Outlook (WEO), IMF predicted oil prices could average above 50 per barrel in 2021, more than 21 per cent rise in 2020.
It also predicted that growth in sub-Saharan Africa will reach 3.2 per cent in 2021 and 3.9 per cent in 2022.
It explained that the updated version of its report was as a result of the emergence of the new coronavirus variant that is posing concern to global economy.
The Economic Counselor and Director, Research Department, Ms. Gita Gopinath, who spoke at the virtual event to unveil the WEO report, said up to 90 million people globally will fall below poverty bracket.
She said that it was better for the low income and emerging economies to go for COVID-19 vaccination.
According to her, “Oil exporters and tourism-dependent economies are particularly hard hit and their prospects are severe given that oil prices have a subdued outlook and cross border travel is not expected to resume anytime soon.
“Even within countries, the burden of the crisis has been felt unequally across different groups. Workers with less education, youth and women have suffered disproportionate income losses. 90 million individuals are expected to enter extreme poverty over 2020/2021 reversing the trends of the past two decades.”
She called for support to enable African countries have vaccines, adding that there were many developing countires waiting till 2022 to get vaccines.
She explained, “ it is also very costly for countries that have the vaccines. Which is why we are calling for greater funding for making sure these vaccines are available to poor nations.”
On oil prices, the IMF report said it will average above $50 per barrel this year, which is more than 21 percent rise in 2020.
The report said global Gross Domestic Product (GDP) is expected to grow 5.5 per cent in 2021, after a 3.5 per cent contraction last year.
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