Taiwo Speaks on IMF’s Nigerian Growth Forecast 2020
Taiwo Akerele the current Chief of Staff, Edo State speaks on the recent IMF’s Nigerian growth Forcast for 2020…
IMF Cuts Nigerian Growth Forecast on Coronavirus Oil Impact
Plunging oil prices stemming from the coronavirus outbreak led the International Monetary Fund to cut its estimate for Nigerian economic growth, highlighting the difficulties Africa’s top crude producer faces reviving and diversifying its economy The forecast was lowered to 2% from 2.5%, the lender said in a statement Monday after concluding an Article IV consultation. Nigeria needs a major policy overhaul to reduce vulnerabilities including widening current-account and budget deficits that jeopardize the economy, it said…..Read More…>
Taiwo responded by saying…
I think this is more realistic following recent developments in the economy. There is weak demand, aviation is facing momentary challenge due to bad weather, infrastructure is still weak and the services industry has not picked up a lot.
However, in the 2nd quarter of 2020 I foresee a strong surge in the agriculture sector as planting season grows with demand for manpower and labor.
The mining sector has not received major boost thereby weakening its contribution to GDP growth despite its huge potentials in buoying growth in the west African giant.
Capital flight has not abated despite regulatory efforts perhaps this could strengthen the local currency the Naira.
By 3rd quarter the IMF may be forced to review its forecast if monetary policy change is targeted at boosting production and non oil sector investment indicators become positive.