IMF forecasts ‘quickened’ growth for Nigeria over improved oil production

The International Monetary Fund(IMF) said yesterday  that it expected growth in Nigeria – Africa’s biggest economy – to quicken as oil production picked up after recent supply disruptions.

It stated that South Africa, now ranked second largest in the continent and which suffered low private sector investments in 2013 and mining strikes which  have persisted, would  post modest growth this year as demand picks up in its main advanced economy trading partners.

The IMF said these in its latest Regional Economic Outlook released yesterday. It affirmed that inflation would remain contained in most countries. “Africa, the world’s poorest continent, needed to ensure growth was more inclusive,” the IMF said,’ citing Mozambique where although the economy has expanded at the same pace as Vietnam, but poverty has declined far more slowly. “Inflation in the region will accelerate to an estimated 6.2 per cent in 2014 from 5.9 per cent last year, before easing slightly in 2015, though currency depreciations may lead to renewed upward price pressures,” the body added.

It noted that investment in infrastructure and natural resources would continue to underpin economic activity in sub-Saharan Africa, although capital outflows sparked by tighter global financial conditions pose a risk to growth.

“The main downside risk to this generally positive baseline scenario is the risk that growth in emerging markets might slow much more abruptly than currently envisaged,” the IMF said in the report.