IMF cuts Nigeria’s 2016 GDP growth to -1.8% – The Cable

The International Monetary Fund (IMF)  has cut Nigeria’s gross domestic product (GDP) growth drastically, from the projected 2.3 percent in April 2016, to -1.8 percent.

In its revised World Economic Outlook (WEO), IMF said on Tuesday that the Nigerian economy would now grow at a much slower pace than South Africa’s, which is expected to grow at 0.1 percent in 2016.

“The outlook for other emerging market and developing economies remains diverse,” IMF said on Tuesday.

“Growth projections were revised down substantially in sub-Saharan Africa, reflecting challenging macroeconomic conditions in its largest economies, which are adjusting to lower commodity revenues.

“In Nigeria, economic activity is now projected to contract in 2016, as the economy adjusts to foreign currency shortages as a result of lower oil receipts, low power generation, and weak investor confidence.

“These revisions for the largest low-income country are the main reason for the downgrade in growth prospects for the low-income developing countries group.”

Unveiling the revised outlook, Maury Obstfeld, IMF economic counsellor and director of the research department, said in a speech titled ‘A spanner in the works: WEO Update Opening Statement’ that the Brexit vote had thrown a spanner in economic growth.