The International Monetary Fund (IMF) has projected the Nigerian economy to grow by 3.4 per cent in 2022, up from 2.7 per cent earlier projected.
IMF disclosed this on Tuesday in its April World Economic Outlook (WEO) report released as part of activities at the ongoing IMF/World Bank spring meetings.
It, however, reduced the global growth projection to 3.6 per cent in both 2022 and 2023, citing the impact of the costly humanitarian crisis economic damage from the Russian war on Ukraine.
The IMF also projected that Russia’s economy would shrink by 8.5 per cent this year while Ukraine’s economy would also decline by 35 per cent.
“The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution,” the report reads.
“At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation.
“Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.”
According to the report, global growth will slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January.
“Beyond 2023, global growth is forecast to decline to about 3.3 per cent over the medium term,” the report added.
“War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 per cent in advanced economies and 8.7 per cent in emerging market and developing economies – 1.8 and 2.8 percentage points higher than projected last January.
“Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential.”