Just In: Nigeria Will Experience Worse Recession In 31 Years

The International Monetary Fund, IMF has projected that Nigeria’s economy will face the worst recession in 30 years.

IMF stated further that Nigeria’s economy will recede by 3% in 2020 due to the Covid-19 pandemic, which has disrupted global supply chains.

It noted that this would be the worst recession in 30 years for the West African giant after a negative economic growth of 1.51% in 2016.

Recall that Nigeria’s economy receded in 1987, by -10.87 and -0.6 in 1991.

The projection was part of IMF’s April 2020 World Economic Outlook report released on Tuesday in Washington DC, United States.

Gita Gopinath, IMF Chief Economist and Director of the Research Department, said the recession to be experienced would be the worst since the Great Depression between 1929 and 1932 when the advanced economies shrunk by 16%.

It is projected that the Nigerian economy will rebound by 2.4% in 2021.

“For the first time since the Great Depression, both the advanced economies and emerging and developing economies are in a recession,” she said in a briefing that marked the beginning of the April 2020 Spring meetings that are holding virtually.

“For 2020, growth in advanced economies is projected at -6%. Emerging markets and developing economies which typically have normal growth levels well above advanced economies are also projected to have negative growth of -1% and -2.2% if you exclude China.

He said further that the fund has projected that 170 countries across the world would experience a shrinkage in their income per capita.

He said the recovery in 2020 would be partial and the projections provided in the report are the baseline scenario.