Economy

IMF Projects 0.8% Growth For Nigeria’s Economy, As Risks Persist

The International Monetary Fund said on Wednesday restated belief that Nigeria could emerge from recession this year, with its economy growing by 0.8%, even as threats to its much anticipated recovery continues to lurk.
This Reuters reported, could mean it said in a report, that the economy would not grow enough to reduce the high unemployment and poverty rates.
“Concerns about delays in policy implementation, a reversal of favorable external market conditions, possible shortfalls in agricultural and oil production, additional fiscal pressures, continued market segmentation in a foreign exchange market that remains dependent on central bank interventions, and banking system fragilities represent the main risks to the outlook,” the IMF said.
“Acting on an appropriate and coherent set of policies to enhance an economic recovery remains urgent,” it said after a team visited Nigeria last month to review reform implementation.
The IMF said the government saw significant revenue shortfalls in the first half of the year, with interest-payments remaining as high as 40% at end of June. It projected interest payments would rise further under current policies.
Nigeria expects a shortfall of $7.5 billion for its 2017 budget. It expects to raise around half that in foreign loans including, from the World Bank and from international debt markets.

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