The International Monetary Fund (IMF) retained the 3.4 percent growth projection for the Nigerian economy this year despite soaring inflation, and the country’s inability to cash in on the rising price of crude oil IgbereTV reports
IgbereTV had reported that the IMF planned to review global economic growth forecast due to the negative impact of the ongoing war between Russia and Ukraine, and historical inflation rocking countries.
In its World Economic Outlook (WEO) for July 2022 titled: “Gloomy and More Uncertain,” the Bretton Wood institution maintained that Nigeria’s economic growth was still projected at 3.4 percent for 2022.
Recall that Nigeria’s inflation hit 18.6 percent in June, reflecting an increase in cost of living in the country, couple with crude oil price rising above $100 per barrel.
Despite the impact on countries, the IMF believes the economy would grow at the same pace despite inflation and an increased interest rate of 14 percent expected to cut consumer spending.
IMF also retained its rates for nations in Middle East, Central Asia and sub-Saharan Africa.
It said: “A tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022 as risks began to materialize. Global output contracted in the second quarter of this year, owing to downturns in China and Russia, while US consumer spending undershot expectations
