As the COVID-19 pandemic continues to inflict high and rising human costs worldwide, the International Monetary Fund (IMF) has projected a contraction in the global economy by -3 per cent this year.
The cumulative loss to global GDP over 2020 and 2021 from the crisis could be around $9 trillion, greater than the economies of Japan and Germany combined.
For the sub-Saharan African region, the IMF, in its latest World Economic Outlook report, projected a contraction of -1.6 per cent, with Nigeria topping the chart with a negative growth of -3.4 per cent, indicating a looming recession for a country that is just recovering from one.
Indeed, the negative growth is hinged on plummeting oil prices and food inflation, even as the latest report deviates from the IMF’s earlier projection of 2.5 per cent growth for 2020 and 2021.
Finance Minister Zainab Ahmed had warned that Nigeria could fall into its second recession in five years if drastic actions were not taken to cushion the economic blow. She estimated this week that the economy could shrink as much as 3.4 per cent this year without a massive stimulus plan that includes billions in Central Bank, Federal Government and international support.