IMF says Nigeria’s economy will contract by 3.4%

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The International Monetary Fund on Tuesday said the recession caused by the COVID-19 pandemic would be the worst economic downturn witnessed since the Great Depression.

According to the IMF, Nigeria’s economy will contract by 3.4 per cent in 2020, but rebound with 2.4 per cent growth in 2021.

The Great Depression, a severe worldwide economic downturn that took place mostly during the 1930s, beginning in the United States, was the longest, deepest, and most widespread depression of the 20th century.

The Great Depression is commonly used as an example of how intensely the global economy can decline.

The IMF made the projection in its latest edition of the World Economic Outlook, which was released at the ongoing Spring Meeting in Washington, US. Nigeria’s economy grew by 2.2 per cent in 2019.

The imminent recession was tagged the ‘Great Lockdown’, obviously with reference to the shutdown of economic activities in several countries in a bid to curb the spread of the pandemic. According to the IMF, the pandemic will shrink the global GDP by three per cent in 2020.

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