IMF cuts Nige­ria’s growth fore­cast to -1.8%

Daily Trust - - FRONT PAGE - By Fran­cis Arinze Iloani

An econ­o­mist, who is also the Group Man­ag­ing Di­rec­tor of TL First Group, Oluse­gun Ola­sode, has said that IMF’s pre­dic­tion that Nige­ria will end 2016 on a neg­a­tive eco­nomic growth showed that the coun­try started the year on wrong eco­nomic pa­ram­e­ters.

Ola­sode said all the pa­ram­e­ters which the coun­try pred­i­cated its 2016 bud­get have changed and the re­fla­tion­ary mea­sures promised by the gov­ern­ment were not yet vis­i­ble on the econ­omy.

“We are al­ready in the se­cond half of the year and all the pa­ram­e­ters we be­gan with at the be­gin­ning of the year haven’t taken ef­fect. It is nat­u­ral that the as­sump­tions that we used in pro­ject­ing at the be­gin­ning of the year have changed. The gov­ern­ment should try and speed up the re­fla­tion­ary ac­tiv­i­ties,” he said.

He said IMF’s pre­dic­tion sug­gested a de­fla­tion, a neg­a­tive growth and de­cline in the na­tion’s econ­omy in 2016.

“If you ask the com­mon per­son in the streets if there has been in­crease in eco­nomic ac­tiv­i­ties in the year, the an­swer will be no. It is not nat­u­ral that there will be a de­cline in the per­for­mance of the econ­omy,” he said.

The con­sul­tant ex­pressed con­cern that out­put in both pro­duc­tion and rev­enue have re­mained low, a de­vel­op­ment that might af­fect the re­cov­ery of the econ­omy.

He said: “There are a num­ber of re­fla­tion­ary ac­tiv­i­ties that the gov­ern­ment is try­ing to bring in to boost the econ­omy and boost pro­duc­tion. How­ever, they have been talked about, they have been launched but we haven’t seen them hap­pen­ing.”

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