ECONOMYTOP STORY

IMF says Nigeria’s economy will contract this year

The International Monetary Fund (IMF) has said on Monday that the Nigerian economy “will probably” shrink in 2016, performing below the IMF forecast for the country.

Speaking in Abuja,

IMF resident representative in Nigeria, Gene Leon, said in Abuja that energy shortages and delayed budget weigh on output in the nation’s economy.

After the economy contracting by 0.4 percent in the first quarter of 2016, Leon said Nigeria will experience some growth in the second half of the year, but he added that it would not be enough to upturn initial shrinkage.  “I think there is a high likelihood that the year 2016 as a whole will be a contractionary year,”she said.

“While the economy should look better in second half of the year, growth will probably not be sufficiently fast, sufficiently rapid to be able to negate the outcome of the first and second quarters.”

The IMF had initially cut its 2016 growth forecast for Nigeria to 2.3 percent in its April Regional Economic Outlook from 3.2 percent projected in February.

Also, the World Bank on the other hand lowered its forecast to 0.8 per cent last month, citing weakness from oil-output disruptions and low prices.

According to Leon, “most people would agree that if you should fix one thing in this country, it should be power. There is a need to start changing the power equation from 2016, from today, not tomorrow or later.”

He added that the inflation, which is currently at 15.6 percent, may surge a little more in the months ahead but would not go beyond 20 percent before the end of 2016.

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  • When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get three e-mails with the same comment. Is there any way you can remove me from that service? Appreciate it!

  • Wow that was unusual. I just wrote an extremely long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say excellent blog!

  • Hi there! Quick question that’s entirely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when browsing from my iphone 4. I’m trying to find a template or plugin that might be able to correct this issue. If you have any recommendations, please share. Appreciate it!

  • Hi there just wanted to give you a quick heads up. The words in your article seem to be running off the screen in Firefox. I’m not sure if this is a format issue or something to do with browser compatibility but I thought I’d post to let you know. The layout look great though! Hope you get the problem resolved soon. Many thanks