Ebun Francis || The International Monetary Fund, (IMF) on Tuesday in Washington said that Nigeria economy is on course to grow faster than the South African economy in 2017.
The IMF had earlier in the year predicted that South African country economy will grow at 1% ahead of Nigeria’s, predicted to expand by 0.8%.
While reversing the outlook for growth to 0.7% in the ongoing world economic summit in Washington, the IMF explained that political uncertainty in South Africa has reduced consumer and investors confidence.
Maurice Obstfeld, the IMF Chief Economist, however, said that the outlook for Nigeria still remains at 0.8%.
Obstfeld said, “Nigeria is expected to emerge from the 2016 recession caused by low oil prices and the disruption of oil production. Growth in 2017 is projected at 0.8% owing to recovering oil production and ongoing strength in the agricultural sector.
“However, concerns about policy implementation, market segmentation in a foreign exchange market that remains dependent on central bank interventions (despite steps to liberalise the foreign exchange market) and banking system fragilities are expected to weigh on activities in the medium term.”