The International Monetary Fund (IMF) has speculated that the Nigerian economy will be out of recession in 2017.
According to IMF, the economy will grow by 0.6 percent next year adding that it is projected that the recession will outlast 2016 with a Gross Domestic Product (GDP) contraction of 1.7 percent.
“Sub-Saharan Africa’s largest economies continue to struggle with lower commodity revenues, weighing on growth in the region,” IMF said in its World Economic Outlook (WEO) report released in Washington
“Nigeria’s economy is forecast to shrink 1.7 percent in 2016 and South Africa’s will barely expand. By contrast, several of the region’s non resource exporters, including Côte d’Ivoire, Ethiopia, Kenya, and Senegal are expected to continue to grow at a robust pace of more than five percent this year.”
“Growth in emerging Asia and especially India continues to be resilient. “India’s gross domestic product is projected to expand 7.6 percent this year and next, the fastest pace among the world’s major economies.”
“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.”
Nigeria’s economy was earlier projected to contract by 1.8 percent in 2016, but the October version of the WEO has seen that reviewed positively to a contraction of only 1.7 percent.