Nigeria’s 0.8 economic growth will be driven by agriculture, oil and govt spending – IMF

Date:

The International Monetary Fund, IMF, Tuesday, projected that Nigeria’s economic growth would rise by 0.8 per cent in 2017.

Thank you for reading this post, don't forget to subscribe!

The agency, in its World Economic Outlook report unveiled in Washington, said continued growth in agriculture, rise in oil output and big government spending will drive the nation’s growth.

The outlook also explained how Nigeria will return to growth after an economic decline of 1.5 percent in 2016.

“In sub-Saharan Africa, a modest recovery is foreseen in 2017. Growth is projected to rise to 2.6 percent in 2017 and 3.5 percent in 2018, largely driven by specific factors in the largest economies, which faced challenging macroeconomic conditions in 2016,” the outlook noted.

“After contracting by 1.5 percent in 2016 because of disruptions in the oil sector coupled with foreign exchange, power, and fuel shortages, output in Nigeria is projected to grow by 0.8 percent in 2017 as a result of a recovery in oil production, continued growth in agriculture, and higher public investment.”

According to the IMF, “inflation in 2017 is expected to remain at double-digit levels in a few large economies in sub-Saharan Africa (for example, Nigeria, Angola, Ghana), reflecting, among other factors, the pass through of large depreciation”.

The AFP reports that Maurice Obstfeld, IMF chief economist, said global growth will continue with the help of advanced economies and emerging low income countries.

“We project the world economy to grow at a pace of 3.5 percent in 2017, up from 3.1 percent last year, and 3.6 percent in 2018. Acceleration will be broad based across advanced, emerging, and low income economies, building on gains we have seen in both manufacturing and trade,” he said.

Mr. Obstfeld added that commodity prices have firmed since early 2016, but at low levels, and many commodity exporters remain challenged – notably in the Middle East, Africa, and Latin America.

“At the same time, a combination of adverse weather conditions and civil unrest threaten several low-income countries with mass starvation. In Sub-Saharan Africa, income growth could fall slightly short of population growth, but not by nearly as much as last year,” he added.

The agency, however, projected that the U.S. economy is expected to grow at 2.3 per cent in President Donald Trump’s first year in office.

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

Share post:

Subscribe

Popular

More like this
Related

Access Holdings to pay N1.80 as final dividend to shareholder

March 28, 2024. Azonuchechi Chukwu. Access Holdings has revealed plans to...

Police gun down two notorious bandits in Benue

March 28, 2024. Azonuchechi Chukwu. Men of Operation Zenda, a Joint...

Army declares eight wanted in connection with the k!lling of its officers in Okuama

March 28, 2024. Azonuchechi Chukwu. The Nigerian Army has declared eight...

Naira Appreciates Against Dollar at the NAFEM Window

March 28, 2024. Azonuchechi Chukwu. The Naira’s euphoric appreciation against the...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading