Nigeria’s economic performance can better IMF’s prediction – report
FSDH Research, an arm of FSDH Merchant Bank Limited, says Nigerian’s economy has the potential to perform better than what the International Monetary Fund predicted.
It added that for the country to realise its full potential, issues such as security of lives and property, infrastructure, rule of law, and the diversification of revenue and the productive base of the economy must be addressed.
The report noted that the short-term forecast for Nigerian economy was unimpressive, according to the latest report by the IMF.
“The uninspiring forecast stresses the need for Nigeria’s economic managers to implement additional growth-enhancing policies that would lift more Nigerians out of poverty,” it stated.
The FSDH report also noted that the IMF predicted in an October report that the Nigerian population would grow faster than the growth in the real Gross Domestic Product over the next five years.
It explained, “This means that expansion in Nigeria’s economy may not be enough to improve the standard of living of its citizens. Nigeria’s inflation rate forecast by the IMF shows that there is no hope of single digit inflation rate before 2023.
“The double-digit inflation rate may make the yields on fixed income securities remain high in Nigeria and thus increase the finance cost for private sector operators.
“FSDH Research believes the Nigerian economy has the potential to perform better than the IMF’s forecast. For this to materialise, however, coordinated policies are urgently required in the following areas to achieve strong and inclusive growth: security of lives and property, infrastructure, rule of law and diversification of the revenue and productive base of the economy.”