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IMF: Nigeria could be heading for worst recession in 30 years due to COVID-19 pandemic

The International Monetary Fund (IMF) has projected that Nigeria’s economy will drop by 3.4% in 2020 as a result of the COVID-19 pandemic that has affected global supply chains.

The IMF on Tuesday, April 14, said that Nigeria could be heading for its worst recession in 30 years due to the COVID-19 pandemic.

This economic downturn is one of the effects of the Coronavirus pandemic predicted by experts around the world.

According to the IMF, Nigeria’s economy will drop by 3.4 per cent in 2020 as a result of the COVID-19 pandemic.

The international organisation made the projection in its April 2020 World Economic Outlook report released on Tuesday in Washington, United States.

IMF Chief Economist and Director of Research Department; Gita Gopinath, said, “For the first time since the Great Depression; both the advanced economies and emerging and developing economies are in a recession.

“For 2020, growth in advanced economies is projected at -6 per cent. Emerging markets and developing economies which typically have normal growth levels well above advanced economies are also projected to have negative growth of -1 per cent and -2.2 per cent; if you exclude China.”

The Nigerian economy is, however, projected to bounce back by 2.4 per cent in 2021.

Meanwhile, President Muhammadu Buhari on Tuesday, April 14; commended the European Union for donating N21 billion (50 million Euros); to support Nigeria’s efforts at controlling the spread of the Coronavirus pandemic.

The president made the commendation when he received the EU delegation to the country; led by Ketil Karlsen, at the State House, Abuja.

Buhari said that the donation would go a long way in supporting Nigeria’s efforts at controlling and containing the virus to prevent community spread.

“The money will also assist our efforts to revitalise the national health care systems,” Buhari said.

He also expressed Nigeria’s sincere condolences to the Government and people of EU-member countries; and families who lost their loved ones as a result of the COVID-19 pandemic.

‘‘Our thoughts and prayers are with the families, friends, and communities impacted. We are confident from history that the resilience of Europe and our global collective will enable us to emerge stronger from this tragedy.

‘‘Although the EU is facing significant challenges due to this pandemic; I am indeed touched and grateful that the European Union still had the vision and foresight to remember its friends; partners; and allies across the world,’’ he said.

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