Uche Usim, Abuja
Amid slow economic recovery due to the COVID-19 pandemic, the International Monetary Fund on Wednesday downgraded its expectations for the Nigerian economy in the 2020 fiscal year.
The World Bank outlook indicates that Nigeria’s Gross Domestic Product will shrink by 5.4 per cent in 2020.
The IMF had in April projected a 3.4 per cent decline in GDP but looking at current realities, it feels otherwise.
However, the global financial institution said the economy will experience a recovery of 2.6% in 2021 which is an improvement of 200 basis points when compared to the 2.4 per cent April projection for 2021.
It added these projections on Wednesday during a presentation on the release of the June 2020 World Economic Outlook.
The Fund further disclosed that the global economy in 2020 and 2021 would further contract by 4.9 per cent and three per debt respectively.
This represents a downgrade from its April projection of three per cent contraction in 2020 and a recovery of 2.2 per cent in 2021.
It said, “Compared to our April World Economic Outlook forecast, we are now projecting a deeper recession in 2020 and a slower recovery in 2021.
We are projecting a synchronized deep downturn in 2020 for both advanced economies and emerging markets and developing economies.
“The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast.”