Increase in Crude Oil Prices to Raise Nigeria’s Economy by 2.3% in 2019

The International Monetary Fund (IMF) has upgraded the growth rate forecast for Nigeria’s Gross Domestic Product (GDP) in 2019 to 2.3 per cent while retaining 2.1 per cent for 2018. The IMF said the upgraded forecast reflects improved prospects for Nigeria’s growth on the back of an improved outlook for oil prices.

The International Monetary Authority announced the new forecast in its World Economic Outlook (WEO) Update, July 2018 titled, ‘Less Even Expansion, and Rising Trade Tensions,’ released on Monday, July 16, 2018. In 2019, a GDP growth forecast of 2.3 per cent was announced for Nigeria, which was 0.4 per cent points higher than the 1.9 per cent announced in April 2018.

In Sub-Saharan Africa scene, the IMF retained GDP growth forecast of 3.4 per cent in 2018, upgraded its forecast for 2019 to 3.8 per cent, from 3.7 per cent announced in April, as a result of the rise in commodity prices.

On the global level, IMF retained its growth forecast for the global economy at 3.9 per cent for 2018 and 2019 but expressed concerns over mounting risks to growth, calling on fiscal authorities to avoid protectionists’ measures and seek cooperative solutions that promote growth.

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