SAN FRANCISCO, July 19, (THEWILL) – The International Monetary Fund, IMF, has downgraded its growth forecast for the Nigerian economy in 2016, warning that a combination of plunging oil revenues and weakened investor confidence will push the economy into recession.
The IMF said on Tuesday that it expects Africa’s largest economy to contract by 1.8 per cent this year, after having forecast a 2.3 per cent expansion in April.
It stated that economic growth across sub-Saharan Africa will be pulled down by Nigeria’s stall, and sluggish activity in the number two economy, South Africa, forecasting a “dramatic implication.”
“In 2016, regional output growth will fall short of population growth, implying declining per capita incomes,” the global financial institution said.
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