The International Monetary Fund (IMF) has cut Africa’s biggest economy GDP forecast for 2018 to 1.9 percent, according to the fund’s latest World Economic Outlook report.
The forecast reduced by 0.2 percentage points from 2.1 percent projection it made in its July 2018 outlook.
IMF also projected the Nigeria’s inflation rate will end at 12.4 percent in 2018.
Globally, it cut the world GDP growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets.
On the eve of its annual meetings in Bali, Indonesia, the fund on Tuesday projected a global expansion of 3.7 percent this year and next, down from the 3.9 percent projected three months ago. It was the first downgrade since July 2016.
“There are clouds on the horizon. Growth has proven to be less balanced than we had hoped. Not only have some downside risks we identified in the last WEO been realized, the likelihood of further negative shocks to our growth forecast has risen.” Maurice Obstfeld, IMF Chief Economist, told reporters in Bali.