According to its latest World Economic Outlook
(WEO) Report launched in Washington DC on Tuesday, the Fund projected that
Nigeria will also grow by 1.9 per cent in 2019.
(WEO) Report launched in Washington DC on Tuesday, the Fund projected that
Nigeria will also grow by 1.9 per cent in 2019.
The IMF, however, advised oil-dependent
economies, including Nigeria, to intensify economic diversification as the
global body foresees the crash of crude oil prices in the near future.
economies, including Nigeria, to intensify economic diversification as the
global body foresees the crash of crude oil prices in the near future.
“Some low-income countries like Mozambique
and Nigeria have experienced financial stress or deteriorating loan
quality in recent years as growth has moderated and corporate balance sheets
have weakened.
and Nigeria have experienced financial stress or deteriorating loan
quality in recent years as growth has moderated and corporate balance sheets
have weakened.
“Further deterioration in loan quality would
impair credit intermediation and ability of the banking sector to support
growth, which would raise the risk of cost recapitalization and severely burden
the already strained public finances,’’ the IMF said.
impair credit intermediation and ability of the banking sector to support
growth, which would raise the risk of cost recapitalization and severely burden
the already strained public finances,’’ the IMF said.
The IMF Director of Research, Mr. Maurice
Obstfeld at the WEO press conference, said that global economy would grow by
3.9 per cent in 2018.
Obstfeld at the WEO press conference, said that global economy would grow by
3.9 per cent in 2018.
Obstfeld said the forecast was borne out of the
continued strong performance in the Euro area, Japan, China and the United
States.
continued strong performance in the Euro area, Japan, China and the United
States.
“Despite the good near-term
news, longer-term prospects are more sobering. Advanced economies are
far facing aging population, falling rates of labour force and low
productivity growth.
news, longer-term prospects are more sobering. Advanced economies are
far facing aging population, falling rates of labour force and low
productivity growth.
“Emerging and developing economies present a
diverse picture. Many of these countries need to diversify their
economies to boost future growth and resilience,’’ he said.
diverse picture. Many of these countries need to diversify their
economies to boost future growth and resilience,’’ he said.
According to Obstfeld, global financial
conditions remained loose, despite the approach of higher monetary policy
interest rates and enabling a further buildup of asset-market vulnerabilities.
conditions remained loose, despite the approach of higher monetary policy
interest rates and enabling a further buildup of asset-market vulnerabilities.
He said that the recent escalating tension over
trade (United States vs China) presented a growing risk for global financial
stability.
trade (United States vs China) presented a growing risk for global financial
stability.
“The prospect of trade restrictions and
counter-restrictions threatens to undermine confidence and derail global growth
prematurely.
counter-restrictions threatens to undermine confidence and derail global growth
prematurely.
“While some governments are pursuing substantial
economic reforms, trade disputes risk diverting others from the
constructive steps they would need to take now to improve and secure growth
prospects,’’ he said.
economic reforms, trade disputes risk diverting others from the
constructive steps they would need to take now to improve and secure growth
prospects,’’ he said.
The IMF encouraged each national government to
advance growth by resolving issues of climate change, infectious diseases,
cyber-security, corporate taxation and corruption, among others.
advance growth by resolving issues of climate change, infectious diseases,
cyber-security, corporate taxation and corruption, among others.
