In 2016, Nigeria’s economy will grow faster than South Africa’s, IMF projects

The International Monetary Fund (IMF) has reiterated its projection that the Nigerian economy will grow faster than South Africa’s economy in 2016.

In the conclusion of its consultations in South Africa, the international financial institution slashed South Africa’s gross domestic product (GDP) growth rate from 0.6 percent to 0.1 percent in 2016.

IMF had said earlier in the year that the Nigeria’s GDP growth will fall from 2.8 percent in 2015 to 2.3 percent in 2016 – higher that South Africa’s 0.6 percent

“Growth in 2016 is expected to decline further to 2.3 percent, with non-oil sector growth projected to slow from 3.6 percent in 2015 to 3.1 percent in 2016 before recovering to 3.5 percent in 2017,” IMF said in March.

However, the new review of South Africa’s economy has shown another slash in the expected growth.

“And while electricity supply has improved, growth continues to be held back by deep-rooted structural problems such as poor education outcomes, and product and labor markets that are out of reach for too many people,” IMF said on Thursday.

“The report shows growth slowed to 1.3 percent in 2015, the lowest since the global financial crisis and below most emerging market economies and commodity producers.

“The IMF projects 2016 growth at 0.1 percent, which would mean a second year of falling per capita incomes.”

Despite IMF’s forecast for Nigeria’s GDP, first quarter results in Nigeria showed a shrinking in GDP growth to -0.36 percent, the lowest in 25 years.

Global economic growth has been challenged by fall in commodity prices, Chinese slowdown and most recently, Brexit.