Adedapo Adesanya
By Adedapo Adesanya
In another round of projections, the International Monetary Fund (IMF) has disclosed that Nigeria is heading towards its worst recession in over 30 years as it expects the nation’s economy to contract by 3.4 percent this year.
This was disclosed by the Bretton Wood institution in its latest edition of the World Economic Outlook report released on Tuesday, April 14.
The report cited by Business Post noted that the current COVID-19 pandemic will severely impact growth across all regions, but offered that in 2021, the Nigerian economy will rebound by as much as 2.4 percent.
In the global economy, there is expectation of a 3 percent contraction largely due to the coronavirus pandemic, however, there is an expected recovery by 5.8 in 2021.
In advanced economies, growth will contract by 6.1 percent this year and rebound by 4.5 percent next year.
In the United States, a contraction of 5.9 percent is expected with a rebound of 4.7 percent, while in the Euro Area, a contraction of 7.5 percent with also a 4.7 percent rebound.
Emerging markets and developing economics are expected to recede by 1.0 this year while rebounding by 6.6 percent next year.
The IMF noted in the report that Sub-Saharan Africa is looking to recede by 1.6 percent and rebound by 4.1 next year while low income developing countries will grow 0.4 percent and further expand by 5.6 percent next year.
This will be the first time since the Great Depression of the 1930s will all advanced, emerging, and developing countries be in a recession.
The IMF then warned on the importance of having effective policies to help guard against the possibility of worse outcomes and the necessary measures to reduce the impact of the coronavirus.
