After concluding its five-day meeting with Nigeria, the International Monetary Fund (IMF) highlights the data on what the Nigerian economy looks like.
Ms. Jasmine Rahman-led team had recently concluded its visitation to Nigeria between June 6-10 and had discussions with the Nigerian government on the status of the Nigerian economy.
IMF disclosed the report of its meeting via a press statement made available to Govima, where it said Nigeria’s Gross Domestic Product (GDP), the economic recovery continues to gain strength on the back of services and agriculture with GDP growth reaching 3.6 percent (year on year), in Q1 2022.
“Latest data shows economic growth broadening to all sectors except oil, where production remains weak reflecting continued security and technical challenges.
“Inflation has reached 17.7 percent (y/y) in May led by a renewed surge in food prices, exacerbated by the war in Ukraine, and raising food security concerns as over 40 percent of the population live below the poverty line.
“To contain inflationary pressures, the Central Bank of Nigeria has recently hiked its monetary policy rate by 150 basis points to 13 percent.
“Regarding the external sector, the current account deficit narrowed significantly in 2021 helped by import compression and higher net oil balance.
“However, the improving trade balance, which has continued so far in 2022, is having a limited impact on Foreign Exchange (FX) strains with the exchange rate premiums in the parallel market staying in the 35-40 percent range since October 2021.
IMF further stated that concerning the economic outlook, GDP growth is projected at 3.4 percent (y/y) in 2022 while inflation is expected to remain elevated.
In its closing remarks, IMF added that it would like to thank the authorities and other counterparts for the open and thoughtful discussions and excellent cooperation.
Meanwhile, the recent data by the Nigerian Bureau of Statistics shows that the inflation rate as at May 2022 stands at 17.71 per cent.
