The International Monetary Fund has said that Nigeria’s economy would shrink by 0.5 percentage point in the fourth quarter of 2022.
The IMF put Nigeria’s economic outlook for Q4 of 2021 at 2.4 per cent while it projected 1.9 per cent for Q4 of 2022, representing a decline of 0.5 percentage point.
The global financial body equally lowered its global growth projection for 2021 to 5.9 per cent while retaining 2022 figures at 4.9 per cent.
The 5.9 per cent figure is 0.1 percentage points lower for 2021 than in the July forecast.
The latest growth figures are contained in the IMF World Economic Outlook released on Tuesday which showed that “although global recovery continues, momentum has weakened, there is a slight downward revision for global growth this year and an unchanged projection for next year (4.9 percent).”
IMF explained that the downward revision for 2021 reflects a downgrade for advanced economies—in part due to supply disruptions—and for low-income developing countries, largely due to worsening pandemic dynamics.
According to the IMF, this is partially offset by stronger near-term prospects among some commodity-exporting emerging markets and developing economies.