According to the International Monetary Fund (IMF), Nigeria is still the largest economy in Africa and 26th in the world.
In its recent World Economic Outlook (WEO) report, the IMF says that Nigeria is still leading other African countries in terms of Gross Domestic Product (GDP).
Also, the report reveals that in its world ranking, Nigeria comes 26th with an average GDP of $442.976 billion.
While this may appear to be good news, it is important to note that the IMF’s computation does not factor in the differences in cost of living.
Additionally, it says that things are not looking great for Nigeria’s economy in the near future. Some of the challenges that the country will face includes; uncertainty over the COVID-19 pandemic, low oil prices, capital outflows and balance of payment challenges.
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Part of the international organisation’s report reads; “Under current policies, the outlook is challenging. Real GDP is projected to contract by 3¼ per cent in 2020. The recovery is projected to start in 2021, with subdued growth of 1½ per cent and output recovering to its pre-pandemic level only in 2022.”
The IMF projects that unless the authorities put broader market reforms in place, Nigeria faces turbulent times ahead. It says that inflation will continue to rise despite all that the Central Bank of Nigeria (CBN) has done to stop it.
There is only one silver lining in the reports; it is the IMF expects food prices to drop in Nigeria soon. Thus, despite having the biggest economy in Africa according to GDP, things may get rougher in Nigeria.
You will recall that the country recently slipped into recession again, the second one in about four years. Experts advise citizens to buckle up.
