EconomyNews

IMF Says Nigeria Heading Towards Recession

By: Africaprimenews

Date:

IMF

Nigeria – The International Monetary Fund (IMF) slashed its growth forecast for the Nigerian economy this year on Tuesday, saying a combination of plunging oil revenues and weakened investor confidence will push it into recession.

The IMF said it expects Africa’s largest economy to contract by 1.8 percent this year, after having forecast in April a 2.3 percent expansion.

Nigeria’s stall, and sluggish activity in the number two economy, South Africa, is expected to pull down economic growth across sub-Saharan Africa, the IMF said, forecasting a “dramatic implication.”

“In 2016, regional output growth will fall short of population growth, implying declining per capita incomes,” it said.

Nigeria’s economy has been battered hard by the plunge in oil prices, the main source of the country’s income, as well as prices of other key commodities.

In addition, rebels in the southern oil region have forced crude production cutbacks, and internal unrest, especially attacks by the Boko Haram group in the north, has also hurt the economy.

Inflation hit an 11-year high of 16.5 percent in June as prices of food and energy jumped after the government freed up the naira currency in April, allowing it to plummet against the US dollar.

Also weighing on output have been electricity shortages due to rebels’ sabotage of the gas pipelines that fire power plants.

Culled from the Guardian

Previous article
NLC Calls For Abolition Of Security Vote, Immunity
Next article
UNICEF Ends Adolescent, HIV/AIDs Programme Sponsorship In Kaduna
Africaprimenews
Africaprimenewshttps://www.africaprimenews.com

111 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Share post:

Popular

More like this
Related

Insecurity: Kaduna Prepares For Grading, Classification Of Hotels, Hospitality Outfits

News Editor News Editor -
Following the lingering insecurity challenges in the country, especially...

DRC And AfDB Approve Plan To Boost Project Performance

Africaprimenews Africaprimenews -
By Sunday Elijah, The government of the Democratic Republic of...

AfDB Approves $500 Million Loan For Nigeria’s Energy And Economic Reforms

Africaprimenews Africaprimenews -
By Smart Emmanuel, The African Development Bank Group (AfDB) has...

Nigerian Patient Successfully Undergoes Complex Skull Base Surgery in Oman

Africaprimenews Africaprimenews -
A 38-year-old Nigerian patient, Michael Ojabo, has successfully undergone...

About us

Africa Prime News is an online news platform whose mission is to provide high-quality development journalism about Africa.

Company

The latest

Nigeria: Appointment Of Gen. Musa, Renewed Commitment To End Insecurity- Northern CAN

Governance 0
Congratulates New Defence Minister The Northern chapter of the Christian...

Nigeria: NCWS, SEC Call For Protection Against Digital GBV

Rights 0
By Justina Auta The National Council of Women Societies (NCWS),...

Nigeria: Trachoma Risk Falls From 41m to 4m – FG

Health 0
By Justina Auta The Federal Government says 41 million Nigerians...

Subscribe

© 2021 tagDiv. All Rights Reserved. Made with Newspaper Theme.

Enable Notifications OK No thanks