The IMF retained its 2.1 percent forecast of Nigeria’s GDP growth rate for 2018, while increasing the 2019 projected GDP growth rate to 2.3 percent1, from 1.9 percent projected earlier. The stated review is at the backdrop of continued increases in commodity prices in the long term, for which crude oil is the benchmark for Nigeria. Outlook on crude oil price and production is expected to maintain upward improvements in the near term. However, the Nigerian government pegs its own forecasted growth rate at 3.5 percent in 2018 – higher than figures predicted by the IMF, although premised around the same driving factors. In order to achieve a 3.5 percent GDP growth rate, a more effective implementation of the bold initiatives in this administration’s economic plan – the Economic Recovery and Growth Plan – is critical particularly in the agriculture and manufacturing sectors.
Macroeconomic Report & Economic Updates
August 14, 2018
Nigeria Economic Update (Issue 29)
The IMF retained its 2.1 percent forecast of Nigeria’s GDP growth rate for 2018, while increasing the 2019 projected GDP growth rate to 2.3 percent1, from 1.9 percent projected earlier. The stated review is at the backdrop of continued increases in commodity prices in the long term, for which crude oil is the benchmark for […]
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Nigeria Economic Review
Global economic growth remained
fairly stable in 2016Q3 with baseline projections for global growth at 3.1 percent and 2.4
percent by International Monetary Fund (IMF) and the World Bank respectively.
Growth in developed countries was moderate but unevenly distributed: while the
U.S and the UK showed improvements, growth in other economies remained tepid.
Among emerging countries, India witnessed higher growth while growth in China
remained constant but the Chinese Yuan continued to appreciate. Given that
India is Nigerias major crude oil importer, improving economic conditions in
India may translate into rising demand for Nigerias crude oil. However, the
continuous appreciation of the Yuan poses significant inflationary threat in
Nigeria given the high level of imports from China. Subdued global demand, weak
trade, uncertainties in commodity prices and consequences of the Brexit were
the key constraining factors to growth over the period. In addition, growth in
Sub-Saharan African countries remained generally slow on the account of low
commodity price, political turmoil, and inconsistent government policies.