Published on Oct 11, 2017 Greenbarge Reporters
The International Monetary Fund (IMF) has predicted that Nigeria’s economy will overtake that of South Africa in 2017.
The IMF’s chief economist, Maurice Obstfeld, who spoke during the unveiling of the World Economic Outlook report at the organization’s headquarters in Washington, said that the rising political uncertainty had reduced consumer and business confidence in South Africa.
“Nigeria is expected to emerge from the 2016 recession caused by low oil prices and the disruption of oil production. Growth in 2017 is projected at 0.8% owing to recovering oil production and ongoing strength in the agricultural sector.
“However, concerns about policy implementation, market segmentation in a foreign exchange market that remains dependent on central bank interventions (despite steps to liberalise the foreign exchange market) and banking system fragilities are expected to weigh on activities in the medium term.”
In its July projections, the Bretton Woods institution had said that the global economy would grow by 3.5% in 2017 and 3.6% in 2018.
It also projected that the growth will reach 3.8% by 2021.
However, IMF called on countries to remain cautious as the growth currently experienced is fragile, advising that ambitious reforms are necessary to avoid a decline.
“Growth in oil exporting advanced countries is projected to recover. In 2017, it is forecast to rise to 1.4% in Norway and increase (by about 1.5%) to 3% in Canada.
“After averaging $43 a barrel in 2016, oil prices are expected to average $50.3 a barrel in 2017 (down from $55.2 a barrel in April 2017 WEO) and stay at about that level in 2018.”
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