The International Monetary Fund (IMF) has projected the Nigeria’s economy to grow by 3.4 per cent in 2022, up from 2.7 per cent earlier projected.
This was disclosed by the IMF on Tuesday in its April World Economic Outlook (WEO) report released as part of activities at the ongoing IMF/World Bank spring meetings.
The report however, reduced the global growth projection to 3.6 per cent in both 2022 and 2023, citing the impact of the costly humanitarian crisis economic damage from the Russian war on Ukraine.
IMF also projected that Russia’s economy would shrink by 8.5 per cent this year while Ukraine’s economy would also decline by 35 per cent.
The report equally says “The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution,”.
“At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation.
“Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.”
Going by the report, global growth will slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January.
It posits that “Beyond 2023, global growth is forecast to decline to about 3.3 per cent over the medium term,”.
IMF is of the view that “War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 per cent in advanced economies and 8.7 per cent in emerging market and developing economies — 1.8 and 2.8 percentage points higher than projected last January.