World Bank IMF and Dev Agencies | |
World Bank IMF and Dev Agencies | |
1232 VIEWS | |
![]() |
Thursday, February 20, 2020 /05:11 PM / By FDC / Header Image Credit: Businessamlive
The IMF has revised downwards Nigeria's 2020 GDP
growth forecast to 2.0% from 2.5%.
This is 0.17% lower than the average growth of 2.17%
in the first three quarters of 2019. The reduction in the growth projection is
reflective of dwindling global oil prices. Brent prices declined 11.17% to $58.63pb
(YTD) as a result of the coronavirus outbreak.
This, at a time when OPEC is considering a cut in
output, is detrimental to Nigeria's fiscal buffers and poses a huge threat to
the implementation of the 2020 budget. The country's fiscal deficit could widen
beyond the current level of N2.18trn (1.52% of GDP).
The Fund noted a slow pace of economic growth, rising
inflation and increased external vulnerabilities and recommended the following:
Also, the Bankers Committee met on February 18. The
committee's deliberation was centered on the possibility of collaborating with
the Federal Government in bridging the country's infrastructure gap.
The Africa Development Bank (AfDB) had earlier
estimated Nigeria's infrastructure gap to cost approximately $3 trillion by
2044 (about $100billion annually).
Bridging the infrastructure gap is a step towards
achieving sustainable development.
Hence, it is believed that this public private
partnership (PPP) model towards infrastructural development will help to stimulate
growth albeit in the medium to long term.
Related News