NEWS HEADLINES NIGERIA’S ECONOMY WILL GROW BY 7.3 PER CENT IN 2014 - IMF font size Print Email 10.Mar.2014 0 Comments Lanre Adewole - Lagos with Agency Report Rate this item1 2 3 4 5 (0 votes) THE International Monetary Fund (IMF) has predicted that Nigeria’s economy would grow by 7.3 per cent in 2014, up from 6.4 per cent in 2013, with sectors other than its energy industry expected to drive the growth, while inflation would reduce further in 2014. Ventures Africa reports the international body as saying that the growth, would be 0.55 percent better than the projection of Nigeria’s Minister of Finance, Ngozi Okonjo-Iweala, who projected a 6.75 percent growth. At the end of the year, inflation would be 7 per cent, a reduction of 0.9 percent from last year’s 7.9 per cent, continuing a two-year down-slope which had been encouraged by the country’s tight monetary policy, the IMF said. “Economic growth is expected to improve further in 2014, driven by agriculture, trade, and services.” The IMF added it expected inflation to continue declining. This would be made possible by lowering food prices through higher rice and wheat production, and “supported by a tight monetary policy and a budget execution that maintains medium-term consolidation objectives.” The IMF, however, identified lower oil prices and production, uncertain pace of the global recovery and the non-stop blood-letting in northern Nigeria as risks to its projections. Investors are also skeptical about the future of their interests as the country nears its general election, which may spike government spending. The IMF, however, advised that, “Policies should focus on rebuilding external and fiscal buffers, avoiding spending pressures from the political cycle, strengthening the transparency and governance of the oil sector”. The nation’s currency, Naira, has been under pressure since the US Federal Reserve’s cutback hit the global economic circle and emerging markets assets sell-off became rampant. Nigeria’s Central Bank has since been using the country’s forex reserves to shore up the currency. The reserves have now fallen to $40 billion, the lowest in 19 months. This situation has also not been helped with the suspension of Central Bank Governor, Sanusi Lamido Sanusi reportedly affecting investors’ confidence. Although there are records of significant job creation, unemployment still reportedly stands at 25 percent and poverty levels remain high in a country that produces millionaires every year. “Continued weaknesses in labour markets, access to electricity, cost of doing business, and small and medium enterprises’ access to finance have prevented a transition to a more robust and inclusive growth path,” the IMF said.
Posted on: Mon, 10 Mar 2014 00:43:10 +0000
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