Business:The economy of Nigeria will contract by 3.4% in 2020 — IMF

Last updated on September 11th, 2021 at 02:54 pm

The International Monetary Fund, IMF said that Nigeria’s economy will contract by 3.4% in 2020, but rebound with 2.4% growth in 2021.

The IMF made this projection in its latest edition of the World Economic Outlook just released at the ongoing Spring Meeting in Washington.

The International Monetary Fund (IMF) on Tuesday projected that Nigeria’s economy would contract by 3.4% in 2020, implying the reversal of the modest 2.27% real growth recorded in 2019 to a possible growth of -1.13% by year end.

The Breton Woods development finance institution, which made this projection in its latest edition of the World Economic Outlook just released at the ongoing World Bank/IMF Spring Meeting in Washington D.C, however, predicted that the nation’s economy would rebound with 2.4% growth in 2021.

The IMF’s Executive Board said the debt relief was part of its revamped Catastrophe Containment and Relief Trust (CCRT). Ms Kristalina Georgieva, the Managing Director, said this in a statement issued in Washington, D.C. on Tuesday.

According to her, the relief was part of the Fund’s response to help address the impact of the COVID-19 pandemic. “This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months.

Others, including China and the Netherlands, are also stepping forward with important contributions.”