The growth of Nigeria is projected to grow by 2.1 percent in FY18, an up from October month’s projection of 1.9 percent by International Monetary Fund (IMF), reveals its World Economic Outlook Update release.
The Fund upgraded the global forecast in its January 2018 release and said the growth may be 3.9 percent in 2018. However, the economic growth has been downgraded for the sub-Saharan Africa to 3.3 percent.
In the press release the international monetary organisation states, “The growth pickup in Sub-Saharan Africa (from 2.7 percent in 2017 to 3.3 percent in 2018 and 3.5 percent in 2019) is broadly as anticipated in the fall, with a modest upgrade to the growth forecast for Nigeria.”
The forum added global output may grow at the pace of 3.9 percent in 2018 and this is an increase by 0.2 percent from earlier forecast. The increased global growth momentum is the primary reason for increased forecast. The recently approved United States tax policy changes is also expected to impact the global economy.
In near future the cyclical rebound could be stronger due to easier financial conditions and pickup in activity, but growth and confidence could be dampened by rich asset valuations as well as compressed term premiums.
According to IMF, the cyclical upswing currently is an ideal opportunity for reforms and it could make growth more inclusive. The financial market is optimistic and financial resilience is imperative.
It is the right time to raise potential output growth and lift productivity. This is very much possible in the advanced economies. Structural and governance reforms are possible in current situation.
