The International Monetary Fund (IMF), has said that the sustained growth in agriculture and rise in oil price and big government investments will drive Nigeria’s economic growth to 0.8 percent in 2017.
The organisation, in its annual economic outlook, explained how Nigeria will return to growth after an economic decline of 1.5 percent in 2016, having projected a 2.6 percent growth in Sub-Saharan Africa in 2017 and 3.5 per cent growth in 2018.
According to the IMF, “after contracting by 1.5 percent in 2016 because of disruptions in the oil sector, coupled with foreign exchange, power, and fuel shortages, output in Nigeria is projected to grow by 0.8 percent in 2017 as a result of a recovery in oil production, continued growth in agriculture, and higher public investment”.
The organisation however informed that inflation is expected to remain at double-digit levels in a few large economies in Sub-Saharan Africa such as Nigeria, Angola, and Ghana, reflecting among other factors, the pass-through of large depreciation.
IMF’s Chief Economist, Maurice Obstfeld, noted the stream of continuing positive data since the middle of 2016.
Obstfeld said developing countries were predicted to expand at 4.5 percent clip this year and 4.8 percent in 2018, an improvement from 4.1 percent growth in 2016.
“There has been a stream of continuing positive data that we have seen since the middle of 2016. The pickup in manufacturing, industrial production and trade are fuelling our confidence that this year and next year will be substantially better than 2016”.