The International Monetary Fund (IMF) has
predicted that Nigeria’s economy will overtake South Africa’s in 2017.
Speaking on Tuesday during the unveiling of
the World Economic Outlook report at the organisation’s headquarters in
Washington, Maurice Obstfeld, IMF’s chief economist, said rising political
uncertainty had reduced consumer and business confidence in South Africa.
He said, “Nigeria is expected to emerge from the 2016 recession caused by low
oil prices and the disruption of oil production. Growth in 2017 is projected at
0.8% owing to recovering oil production and ongoing strength in the
agricultural sector.
“However, concerns about policy
implementation, market segmentation in a foreign exchange market that remains
dependent on central bank interventions (despite steps to liberalise the
foreign exchange market) and banking system fragilities are expected to weigh
on activities in the medium term.”
In its July projections, the Bretton Woods
institution had said the global economy would grow by 3.5% in 2017 and 3.6% in
2018.
It also projected that the growth will reach
3.8% by 2021.
However, IMF called on countries to remain cautious as the growth currently
experienced is fragile, advising that ambitious reforms are necessary to avoid
a decline.
“Growth in oil exporting advanced countries
is projected to recover. In 2017, it is forecast to rise to 1.4% in Norway and
increase (by about 1.5%) to 3% in Canada.
“After averaging $43 a barrel in 2016, oil
prices are expected to average $50.3 a barrel in 2017 (down from $55.2 a barrel
in April 2017 WEO) and stay at about that level in 2018,” he stated.
Source: dailypost.ng
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