IMF Releases World Economic Outlook

IMF Attributes Nigeria’s Inflation To Forex ChallengesThe International Monetary Fund (IMF) says the global economic growth noticed since 2016 is likely to continue in 2017 and 2018.

The IMF Economic Counsellor and Director of Research, Maurice Obstfeld, said this on Tuesday at an event to flag-off the Spring Meetings of the World Bank and IMF in Washington D.C.

For Sub-Saharan Africa, the economic growth outlook by the IMF is seen coming behind the rate of population increase on the continent.

Mr Obstfeld noted that it requires contribution from both advanced and emerging countries around the world to sustain economic growth.

He added that the projected 3.5 per cent for 2017 and 3.6 per cent for 2018 are subjected to a number of challenges in key economies like the United States and China.

The economist called for united multi-lateral actions to address issues of nationalism, so as to protect foreign workers and improve trade.

IMF Predicts Weak Global Economic Growth In Q4 2016

IMF, Economic growth, 2016The International Monetary Fund (IMF), says global economic growth will remain weak this year, following a slowdown in the United States and Britain’s vote to leave the European Union.

In its latest World Economic Outlook released on Tuesday, the IMF expects the world’s economy to expand by 3.1% this year, unchanged from its July projection, while a slight recovery of 3.4% is expected in 2017.

The IMF reduced its forecast for the United States to 1.6% in 2016, down from 2.2% in July, while China, the world’s second largest economy is projected to expand 6.6 percent in the current year and 6.2% next year.

Chief Economist and Economic Counsellor of IMF, Maurice Obstfeld said “taken as a whole, the world economy has moved sideways.

“We have slightly marked down 2016 growth prospects for advanced economies while marking up those in the rest of the world,” he added.

Nigeria’s Economic Recession

Nigeria is one of the countries that is currently experiencing a recession with the IMF concluding that the economy would contract by 1.8%.

The county’s revenue is said to have fallen by as much as 33%, which according to the United Nations resulted in the contraction of the Gross Domestic Product (GDP) in the first three months of 2016.

The largely subsistence agricultural sector has not kept up with rapid population growth, and Nigeria, once a large net exporter of food, now imports large quantity of its food products.

However, economic and financial experts have been proferring solutions which might help revive the economy.

There have been suggestions to diversify the economy and shift attention back to agriculture, manufacturing, and private sector investment.

#Brexit woes

Meanwhile, IMF says with Britain’s vote to leave the EU,  which is both historic and world-changing, it should serve as a wake up call to countries that in several ways have relied on it.

Mr. Obstfeld says although the market reaction to Brexit was reassuringly orderly, the ultimate impact remains very unclear.

He added that the vote has however resulted in more sentiments towards emerging market economies like Nigeria.