Inflation to remain high in Nigeria in 2018 – IMF

Nigeria’s inflation projected to cross 12% threshold

The International Monetary Fund has said it expects inflation in Nigeria and Angola to remain elevated at two-digit levels next year.

The IMF said this would reflect the persistent effects of past inflationary shocks coming from sharp currency depreciations as well as higher electricity and fuel prices and, “in the case of Nigeria, reflecting the assumption that monetary policy will remain accommodative going forward.”

Inflation in Nigeria dropped marginally from 16.1 per cent in June to 16.05 per cent in July, the sixth consecutive decline in the rate since January 2017, according to the National Bureau of Statistics.

The fund said on Tuesday that it, however, expected sub-Saharan Africa, where growth in per capita incomes had on the average stalled for the past two years, to improve overall in 2018.

It noted that the latest World Economic Outlook report had upgraded its global growth projections to 3.6 per cent for this year and 3.7 per cent for next year, well above 2016’s global growth rate of 3.2 per cent, which was the lowest since the global financial crisis.

“Economic growth in sub-Saharan Africa is projected to reach 2.6 per cent in 2017 and 3.4 per cent in 2018 (broadly in line with the April forecast), with sizable differences across countries,” it said.

The IMF said downside risks had risen because of idiosyncratic factors in the region’s largest economies and delays in implementing policy adjustments.

“Beyond the near term, growth is expected to rise gradually, but barely above population growth, as large consolidation needs weigh on public spending,” it added.

According to the report, growth in 2017 is projected at 0.8 per cent, 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 initial steps to liberalise the foreign exchange market), and banking system fragilities are expected to weigh on activity in the medium term,” it said.

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About Haruna Magaji 5574 Articles
Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - [email protected]

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  5. It is a shame in Nigeria,that govt polocies,the voices of the people and the voices of Nigerian apparatus have been hijacked and pirated by foreigner.one feela that Nigeria have won their freedom from the white man in 1960. we will have real freedom in Nigeria.what we are experiencing in Nigeria,is neo-colonization by the white man and their tools IMF,world bank or the UN.
    The govt said they projects the economy to grow by 2% this year,when you allows imf to voices their view.through a Nigerian wholly owned media outfit,an ignorant Nigerian or less informed nigeria will believe as it is the bloody truth.
    here in Africa,we suffer untold suffering and pains from the white man for more than 500 yrs from europeani.e the trading of africans slavea and colonization,even today.this govt floated dollar bond and they floated in America and in Britain.tis diapoea bond and the recent dollar bond.once this floated it will grows.when it’s prices will end,we do not know,the white man cannot be trusted in any way,through it’s organ imf,commonwealth,uno.
    With this brexit of briain from Europe,their economy have started to slow dowm.it is about 90 %,Britain will enter a full blown recession by early next year.once this govt float this dollar bond on the London stock exchange.we Nigerian,the people and the govt will props and supports or subsidizes the british economy.may god saves us from kemi,buhari and udoma,and the enemies of nigeria

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