FG disagrees with IMF, says economy to grow by 2.2% - Full Gist NG


Friday, 4 August 2017

FG disagrees with IMF, says economy to grow by 2.2%

The Federal Government and the International Monetary Fund (IMF) have disagreed over how much the economy will grow this year, with the govern­ment saying 2.2 percent and the Fund opting for just 0.8 percent.

Either would, however, be an improvement on last year, when Nigeria suffered its first recession in
more than two decades.

The government’s forecasts, seen by Reuters on Thursday, are contained in a document titled: 2018-2020 Medium Term Fiscal Framework and Strategy Paper, which forms the basis for its 2018 budget, dated July 27.

It projects a big bounce back, to 2.2 percent this year, 4.8 percent in 2018 and 4.5 percent in 2019, before reach­ing 7 percent in 2020.

The economy slipped into a recession in 2016 as low crude prices and oil produc­tion slashed government rev­enues, caused dollar shortages and crippled its economy.

It contracted 0.5 percent in the first quarter, its smallest fall in five quarters of decline.

The IMF, however, is not so bullish, saying on Wednesday it expects Nigeria’s economy to grow by 0.8 percent this year, with threats to growth remaining elevated. (Reuters)

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