Global financial institution, the International Monetary Fund (IMF) has projected in its latest World Economic Outlook report released on Tuesday at ongoing virtual Spring Meeting in Washington, that Nigeria is headed for worst recession in 30 years with -3.4% GDP contraction in 2020 on account of the Covid-19 pandemic.
The report also projected that sub-Saharan Africa will contract by -1.6% in 2020, but will have a growth of 4.1% in 2021.
For Nigeria, it further said the economy is expected to recover from the recession and grow by 2.4% in 2021.
“For the first time since the Great Depression, both the advanced economies and emerging and developing economies are in a recession,” IMF Chief Economist, Gita Gopinath, said
“For 2020, growth in advanced economies is projected at -6%. Emerging markets and developing economies which typically have normal growth levels well above advanced economies are also projected to have negative growth of -1% and -2.2% if you exclude China.”
The report said global economy is projected to contract sharply by -3% in 2020 due to the coronavirus pandemic, but will rebound to grow by 5.8% in 2021.
It however, caveats that effective policies are essential to forestall the possibility of worse outcomes and the necessary measures to reduce the coronavirus disease and protect lives are an important investment in long-term human and economic health.