IMF cuts Nigeria’s growth forecast to -1.8%
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.”