The International Monetary Fund (IMF) has lowered its global growth forecast for 2019 to 3 per cent in the newly-released World Economic Outlook (WEO) report, down 0.2 percentage point from its estimation in July, reported.
Noting that this is the slowest pace since the global financial crisis, IMF chief economist Gita Gopinath wrote in a blog post that “growth continues to be weakened by rising trade barriers and increasing geopolitical tensions.”
According to the forecast, Nigeria’s Gross Domestic Product (GDP) growth will also remain weak throughout 2019.
The IMF WEO report on developing countries reads in part, “Growth in low-income developing countries remains robust, though growth performance is more heterogeneous within this group. Robust growth is expected for non-commodity exporters, such as Vietnam and Bangladesh, while the performance of commodity exporters, such as Nigeria, is projected to remain lacklustre.
“In sub-Saharan Africa, growth is expected at 3.2 percent in 2019 and 3.6 percent in 2020, slightly lower for both years than in the April 2019 WEO.
“Higher, albeit volatile, oil prices earlier in the year have supported the subdued outlook for Nigeria and some other oil-exporting countries in the region, but Angola’s economy—because of a decline in oil production—is expected to contract this year and recover only mildly next year.
Similarly, advanced economies continue to slow towards their long-term potential, with growth downgraded to 1.7 per cent this year, compared to 2.3 per cent in 2018, the report showed.