Nigeria’s Economy Will Grow Faster Than South Africa’s In 2017 – IMF

The International Monetary Fund (IMF) has projected that Nigeria’s economy will grow in a faster pace than that of South Africa in 2017.

Maurice Obstfeld, IMF’s chief economist, who made the disclosure, said rising political uncertainty has reduced consumer and business confidence in South Africa.

Obstfeld was speaking at the unveiling of the World Economic Outlook report at the organisation’s headquarters in Washington, on Tuesday.

The Fund had in July said South Africa’s economy will grow by 1% in 2017 while Nigeria will experience a 0.8% economic expansion.

According to the new projections, Nigeria’s economic growth remains at 0.8%, while South Africa’s is expected to contract by 0.7%.

He said: “Nigeria is expected to emerge from the 2016 recession caused by low oil prices and the disruption of oil production. Growth in 2017 is projected at 0.8% owing to recovering oil production and ongoing strength in the agricultural sector.

“However, concerns about policy implementation, market segmentation in a foreign exchange market that remains dependent on central bank interventions (despite steps to liberalise the foreign exchange market) and banking system fragilities are expected to weigh on activities in the medium term.”
IMF urged countries to remain cautious as the growth currently experienced is fragile, advising that ambitious reforms are necessary to avoid a decline.

“Growth in oil exporting advanced countries is projected to recover. In 2017, it is forecast to rise to 1.4% in Norway and increase (by about 1.5%) to 3% in Canada.

“After averaging $43 a barrel in 2016, oil prices are expected to average $50.3 a barrel in 2017 (down from $55.2 a barrel in April 2017 WEO) and stay at about that level in 2018.”

The 2017 Annual Meetings of the World Bank Group and the International Monetary Fund is expected to commence on Friday, October 13, at the IMF headquarters, Washington, D.C.