The International Monetary Fund (IMF), says Nigeria’s economy could grow by a robust 2.1% this year, up from 0.8% in 2017, before notching higher by 2019 when it is projected to rise by 2.3%, on the back of recovery in oil prices and stable oil output arising from sustained peace in the nation’s once volatile Niger Delta region.
The 2018 forecast is an improvement from the 1.9% growth estimated in April, amidst its recovery from its worst recession in over two decades.
“The upgraded forecast reflects improved prospects for Nigeria’s economy. Its growth is set to increase from 0.8% in 2017 to 2.1% in 2018,” the IMF said.
This growth by Nigeria, just as that of South Africa could see Africa’s economy expanding by as much as 3.8% by 2019, according to the IMF’s World Economic Outlook update released Monday, up from 3.7%.
“The recovery in sub-Saharan Africa is set to continue, supported by the rise in commodity prices. For the region, growth is expected to increase from 2.8% in 2017 to 3.4% this year, rising further to 3.8% in 2019.”
Unlike Nigeria however, the IMF sustained its 1.5% growth prediction for South Africa, as well as next year’s 1.7%.
According to the fund, “Despite the weaker-than-expected first-quarter out-turn in South Africa, the economy is expected to recover somewhat over the remainder of 2018 and into 2019 as confidence improvements associated with the new leadership are gradually reflected in strengthening private investment.”
“Despite the weaker-than-expected first quarter outturn in South Africa (in part due to temporary factors), the economy is expected to recover somewhat over the remainder of 2018 and into 2019 as confidence improvements associated with the new leadership are gradually reflected in strengthening private investment,” the IMF said.
Meanwhile global growth is projected to reach 3.9% in 2018 and 2019, in line with the forecast of the April 2018 outlook. Expansion is becoming less even, and risks to the outlook are mounting, according to the report.