Nigeria economy to continue sluggish trend in 2020, says IMF

The International Monetary Fund (IMF), says Nigeria’s economy will continue its sluggish trend with a 2.5% growth rate in 2020 amidst several policy uncertainties.

According to the IMF, in sub-Saharan Africa, growth is expected to strengthen to 3.5% in 2020–21 (from 3.3% in 2019).

The IMF stated that the slow growth forecast for the region reflects downward revisions for South Africa (where structural constraints and deteriorating public finances are holding back business confidence and private investment) and for Ethiopia (where public sector consolidation, needed to contain debt vulnerabilities, is expected to weigh on growth).

Meanwhile, the World Bank disclosed that the growth in the region is projected to stabilize as investors’ confidence in some of the large economies improve and oil production in major oil exporters picks, while activities among exporters of agricultural commodities remain solid.

On the downside, the World Bank stated that Per capita growth will remain below 1%. It added that several downside risks could materialize and these include slower-than-expected growth in major trading partners. Others are episodes of financial stress given rising debt vulnerabilities, disruptions to activity amid increased displacement of populations and growing climate risks.

Also, the global lender stated that Insecurity, conflicts, insurgencies and food security would weigh on economic activities of several economies like Burkina Faso, Chad, Ethiopia, Mali, Niger, and Nigeria.