Deputy director at IMF’s research department, Gian Maria Milesi-Ferreti, made it known on Tuesday while addressing journalists at the ongoing annual meetings of the International Monetary Fund and World Bank Group in Bali, Indonesia, that the IMF has cut the growth projections made for Nigeria, saying the economy is doing poorly.
He said the aggregate growth rate of Africa is being held down by its three largest economies: Nigeria, South Africa and Angola.
“The aggregate growth rate for the continent is held down by the fact that the three largest economies are not performing up to their full potential,” Milesi-Ferreti said. “Nigeria’s growth, 1.9 percent this year; 2.3 next year. South Africa, only 0.8 percent this year. Angola, contracting by 0.1 percent this year. So the aggregate — over three percent this year, close to four percent next year — is despite the largest economies in the continent doing poorly.
“The continent could do much better once these economies are on a more solid footing, particularly South Africa and Nigeria because they are really large and affect a number of countries in their neighbourhood.”
Nigeria’s economy was projected to grow by 2.1 percent in 2018 and 2.3 percent in 2019 in the World Economic Outlook report released in July in Bretton Wood.
“In Nigeria and Angola, tighter monetary policy and moderation in food price increases contributed to tapering inflation. In Nigeria, inflation is projected to fall to 12.4 percent in 2018, from 16.5 percent in 2017, and to rise to 13.5 percent in 2019,” the report read.
The World Bank recently cut its growth projections for Nigeria by 0.2% citing reduction in oil production levels, and contraction in the agricultural sector, following the herder-farmer crisis.