The International Monetary Fund (IMF) announced, Friday, November 18 in a press release, a downward revision to 3% of Nigeria’s economic growth forecasts in 2022, against 3.4% previously forecast.
“GDP growth is expected to moderate in 2022 to 3% and improve slightly next year. The slowdown in growth reflects weak oil production since the beginning of the year and the negative effects of recent floods,” explains the document released after an assessment mission of the Nigerian economy.
The inflation rate will also decline by the end of 2022, while the budget deficit is expected to widen to 6.2% of GDP in 2022, due to increasingly onerous energy subsidies. .
As recommendations, the institution calls on the authorities to carry out reforms with a view to creating budgetary room for manoeuvre, by proceeding, among other things, with the abolition of energy subsidies and the gradual increase in the value added tax.
The Nigerian economy grew by 3.6% in 2021, the highest rate since 2014, after contracting by 1.8% in 2020.
By OMA Newsletter N° 944 of 21/11/2022
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
