Nigeria’s 2021 Growth Rate Has Been Raised To 2.5 % – IMF

The International Monetary Fund (IMF) has raised Nigeria’s Gross Domestic Product (GDP) 2021 growth rate from 1.5 per cent to 2. 5 per cent.

This was recently revealed in its World Economic Outlook (WEO) released by the organization, and Nigerians have been reacting.

According to IMF, however, they have to slightly reduce next year’s growth forecast from 2.5 per cent to 2.3 per cent because that is looking like the reality.

IMF added that Global growth is also projected at 6 percent in 2021, moderating to 4.4 percent in 2022, and the projections for 2021 and 2022 are stronger than in the October 2020 WEO.

It read, “Global growth is projected at 6 percent in 2021, moderating to 4.4 percent in 2022. The projections for 2021 and 2022 are stronger than in the October 2020 WEO.”

“The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdued mobility. High uncertainty surrounds this outlook, related to the path of the pandemic, the effectiveness of policy support to provide a bridge to vaccine-powered normalization, and the evolution of financial conditions.”

“New virus mutations and the accumulating human toll raise concerns, even as growing vaccine coverage lifts sentiment.”

“Economic recoveries are diverging across countries and sectors, reflecting variation in pandemic-induced disruptions and the extent of policy support. The outlook depends not just on the outcome of the battle between the virus and vaccines—it also hinges on how effectively economic policies deployed under high uncertainty can limit lasting damage from this unprecedented crisis.”

“One year into the COVID-19 pandemic, a way out of this health and economic crisis is increasingly visible, but prospects remain highly uncertain. The strength of the recovery will depend in no small measure on a rapid rollout of effective vaccines worldwide. Much remains to be done to beat back the pandemic and avoid persistent increases in inequality within countries and divergence in income per capita across economies.”