Nigeria remains Africa’s largest economy, 26th in the world
The International Monetary Fund (IMF) said Nigeria retained its lead as Africa’s largest economy in terms of the country’s gross domestic product (GDP).
But globally, the IMF, in its recently published World Economic Outlook (WEO), edited yesterday by THISDAY, ranked Nigeria as the 26th largest economy with an average GDP of $ 442.976 billion.
The calculation was based on nominal GDP, which does not account for differences in the cost of living across countries.
The IMF recently issued a grim verdict on Nigeria’s economy for 2020, saying the country’s economic outlook is challenging.
The multilateral agency, in its recently published Article IV consultation on Nigeria 2020, said the country’s economy is “rocking” side by side due to a cocktail of issues including uncertainty over the COVID-19 pandemic, low oil prices, outflows and balance of payments problems. ” …
The IMF said: “The global COVID-19 pandemic is taking a heavy toll on the economy of Nigeria, which has already experienced declining per capita income and double-digit inflation with limited buffers and structural bottlenecks.
“Low oil prices and strong capital outflows have significantly increased the pressure on the balance of payments (BOP) and, together with the freeze associated with the pandemic, led to a sharp decline in production and increased unemployment.”
According to the IMF, due to a lack of supply, headline inflation reached a 30-month high.
It reads: “With current politics, the prospects are not easy. Real GDP is projected to contract by 3¼% in 2020. The recovery will begin in 2021, with moderate growth of 1.5% and a return to the previous level of production. -pandemic only in 2022 “.
The IMF report, which acknowledged the efforts of the Central Bank of Nigeria (CBN) to contain inflation, nevertheless argued that, despite the expected decline in food prices, inflation is expected to remain double-digit and above the target CBN range.
“After a significant decline in income – from levels that were already among the lowest in the world – the budget deficit is expected to remain high in the medium term,” the report says.
In recognition of the various policies adopted by the federal government, the Bretton Woods Institute continues to believe that broader market reforms are needed to overcome the acute pressure on the balance of payments in Nigeria.
Source: – Thisdaylive