The International Monetary Fund (IMF) on Tuesday projected Nigeria’s economy would contract by -3.4 percent in 2020 from 2.2 percent in 2019.
The Washington based Fund expects the economy to grow by 2.4 percent in 2021. IMF Chief Economist Gita Gopinath, disclosed this while presenting the world economic outlook at the ongoing virtual Spring meeting of the IMF and the World Bank group in Washington D.C.
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Inflation rate is projected to rise by 13.4 percent in 2020 from 11.4 percent in 2019 and to moderate to 12.4 percent in 2021, higher than the Central Bank of Nigeria (CBN) single digit target of 6-9 percent.
Angola’s economy was expected to remain in recession, contracting 1.4% in 2020.
The IMF and the World Bank – which has also projected a recession for sub-Saharan Africa in 2020 – are racing to provide emergency funds to African countries and others to combat the coronavirus and mitigate the impact of sweeping shutdowns aiming at curbing its spread.
The IMF said in its World Economic Outlook that GDP was projected to fall sharply in South Africa, the continent’s most advanced economy. The country’s GDP is projected to contract 5.8% in 2020 from growth of 0.2% in 2019.