The International Monetary Fund (IMF) says that the Nigerian economy “will probably” shrink in 2016, performing below the IMF forecast for the country.
IMF resident representative in Nigeria, Gene Leon, who spoke in Abuja on Monday identified energy shortages and delayed budget weigh on output in Africa’s largest economy.
Bloomberg quoted Leon as saying Nigeria will experience some growth in the second half of the year, but he added that it would not be enough to upturn initial shrinkage.
“I think there is a high likelihood that the year 2016 as a whole will be a contractionary year,”
“While the economy should look better in second half of the year, growth will probably not be sufficiently fast, sufficiently rapid to be able to negate the outcome of the first and second quarters.”
The IMF had initially cut its 2016 growth forecast for Nigeria to 2.3 percent in its April Regional Economic Outlook from 3.2 percent projected in February.