Although Nigeria is currently experiencing the worst recession in 29 years, the International Monetary Fund(IMF) has projected it as the biggest economy in Africa.
In spite of the economic situation in Nigeria, IMF ranks the western African country higher than South Africa and Egypt. It comes as a mild shock considering Nigeria had reportedly lost its ‘number 1 economy in Africa’ position to Egypt earlier in August.
A new data by the IMF shows Nigeria’s GDP for 2016 projected at $415.080 billion in comparison to the $493.831 billion actual GDP recorded at the end of 2015.
The International Monetary Fund nonetheless predicted that the Nigerian economy will grow by 0.6% in 2017. Although Fitch ratings reduced its forecast of Nigeria’s 2016 GDP from 1.5% to 1%, Fitch ratings also believes the Nigerian economy will bounce back in 2017, particularly if dollar liquidity loosens up.
The IMF also projects South Africa’s GDP for 2016 at $280.367 billion despite the actual GDP of $314.732 billion from the previous year. However, the organization projects a 0.8% increase in GDP for South Africa in 2017.
There was no projection for Egypt, which was the projected biggest economy in Africa some months ago. However, its 2015 actual GDP still remained at $330.159.
The US, China, and Japan still remained top as the world’s largest economies. The trio had projected GDPs of $18.561 trillion, $11.391 trillion and $4.73 trillion respectively for 2016.
The IMF also complained about global growth, saying that the global economy has been growing slow for far too long. It blames 2016 slow progress on the slowdown in the United States, as well as Britain’s vote to leave the European Union.
IMF expects global growth to gradually increase by 3.8% in 2021. The organization also advises that for countries to increase their growth prospects they have to rely on all policy levers—monetary, fiscal and structural.