Nigeria Will Be Out of Recession By 2017- IMF Predicts

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The International Monetary Fund, IMF, has predicted that the Nigerian economy will witness a 0.6%  growth in 2017, which will effectively lift the country out of an officially declared recession.

In the IMF’s World Economic Outlook report released on Tuesday, Nigeria’s real Gross Domestic Product is expected to increase marginally by 0.6% with Consumer Prices rising by 17.1%.

Also See: Devalue the Naira to Overcome the Recession – EU Official to FG

Nigeria’s Current Account Balance is however forecast to slump further by 0.4% next year.

According to the Bretton Woods institution, the projected increase in global growth in 2017 to 3.4% hinges crucially on rising growth in emerging market and developing economies.

After 2017, IMF expects global growth to gradually increase by 3.8% in 2021.

Recession

This recovery in global activity, which is expected to be driven entirely by emerging market and developing economies, is premised on the normalisation of growth rates in countries like Nigeria, Russia, South Africa, Latin America, and parts of the Middle East.



A report released by the Nigeria Bureau of Statistics in August revealed that Nigeria was going through its worst recession in 29 years.

The report further showed that the country’s Gross Domestic Product (GDP) contracted by 2.06%  to record its lowest growth rate in three decades. This means that the GDP shrunk by 0.36%.

Should the IMF prediction be true, Nigerians would finally be relieved of the hardship already biting so hard.

Meanwhile, the Nigerian Economic Summit Group (NESG) has highlighted the need to embrace self- sufficiency as a viable alternative to improve Nigeria’s dwindling economy.

The Group made the call during a press conference organised in Lagos to announce the 22nd Nigerian Economic Summit.

Speaking during the press conference, the group’s CEO, Mr Jaiyeola Laoye, described the Made in Nigeria initiative as an economic growth and development strategy for Nigeria’s short, medium and long term development.

Also See: Economic Recession: 2 Presidential Jets Up For Sale

Mr. Jaiyeola explained that Nigeria’s status as an import dependent and a huge consumption economy has led to negative economic growth, dwindling foreign reserves, and pressure on local currency exchange rate relative to major currencies.