Published: Tue, January 23, 2018
Economy | By Melissa Porter

International Monetary Fund projects 2.1% economic growth for Nigeria

International Monetary Fund projects 2.1% economic growth for Nigeria

The International Monetary Fund (IMF) on Monday raised its global growth forecast for 2018 and 2019 by 0.2 percentage point to 3.9 percent, due to increased global growth momentum and the expected impact of the recently approved USA tax policy changes.

The aggregate growth forecast for emerging markets and developing economies for 2018 and 2019 remain unchanged, with marked differences in the outlook across regions.

In the year gone by, China (6.8%) was ahead of India (6.7%), giving China the tag of being the fastest growing emerging economies, as has been the case for major parts of the past several decades.

Ramaphosa is likely to become South Africa's next president after elections in 2019, because of the ANC's electoral dominance.

Current upswing in the global economy "furnishes an ideal moment to act on a range of multilateral challenges", Obstfeld said. "Consistent with these plans, the country's ongoing and necessary rebalancing process implies lower future growth".

The IMF also revised upward the growth of global output in 2017 to 3.7 percent, which is 0.1 percentage point faster than that projected in the fall and 0.5 percentage point higher than in 2016. Absent reforms, the fundamental forces that had us anxious about the "new mediocre" - and future growth potential - will remain in place, she said.

But the United Kingdom is forecast to go in the opposite direction, with growth pencilled in by the International Monetary Fund at 1.7% for 2017 before slipping further. Both estimates were 0.1 percentage point higher than those given in its last outlook in October. Mexico's economy will be 0.4 points stronger this year and 0.7 points stronger in 2019.

"Purchasing managers' indices indicate firm manufacturing activity ahead, consistent with strong consumer confidence pointing to healthy final demand", the International Monetary Fund said.

The agency noted that risks to its global outlook were "broadly balanced" in the near term, but skewed to the downside in the medium term. "But political leaders and policy makers must stay mindful that the present economic momentum reflects a confluence of factors that is unlikely to last for long", he said, arguing that Donald Trump's tax cuts were likely to only provide a short-term boost to growth.

Advanced economies are seeing solid simultaneous growth, and the U.S. tax reform passed just before Christmas will have a measurable effect, at least for a couple of years.

At that time the IMF's director general said that the UK's economic performance since the Brexit vote in June 2016 had vindicated the Fund's pre-referendum warnings. The increase in fuel prices raised headline inflation in advanced economies, but wage and core-price inflation remain weak.

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