Nigeria for the first time in 15 years has dropped out of the league
of fastest growing economies in Africa, according to the
International Monetary Fund’s (IMF) World Economic Outlook for
Africa in 2016.
The revised outlook released on Tuesday indicates that the country’s economy will
grow by a modest 3.2 percent from an average of 7.0 percent it has grown in the
last decade, making her drop to the league of slow growing economies.
In 2014 and early 2015, Nigeria was named the third fastest growing economy in
the world by CNNMoney with China and Qatar ahead of Nigeria on 7.3 and 7.1
percent gross domestic product (GDP) growth, respectively.
The country’s status as one of the world’s fastest growing economies came to fore
majorly in the wake of its rebased GDP in 2014, which made it Africa’s largest
economy and 26th in the world.
In the revised outlook, the IMF noted Cote d’Ivoire as the fastest growing economy in
Africa for 2016 while Chad was named the slowest with expected negative growth.
Specifically, the IMF said Cote d’Ivoire dethroned Africa’s giant, Nigeria, and she is
expected to experience an 8.5 percent rise in GDP. On the other hand, Nigeria’s
neighbour, Chad, is expected to see a -0.4 percent growth.
Chad like Nigeria is one of the countries suffering from the Boko Harm insurgency
and is heavily imperiled by systemic corruption and undemocratic tendencies.
The fastest growing economies in Africa by GDP growth rate, as projected by IMF
for 2016 are: Cote D’Ivoire (8.5%), Tanzania (6.9%), Senegal (6.6%), Djibouti (6.5%),
Rwanda (6.3%), Kenya (6.0%), Mozambique (6.0%), Central African Republic (5.7%),
Sierra Leone (5.3%) and Uganda (5.3%).
Also, DR Congo expects a GDP growth of 4.9 percent; Cameroon, 4.9 percent;
Ethiopia, 4.5 percent; Ghana, 4.5 percent and Republic of Congo, 4.4 percent.
Madagascar, Zambia and Chad are expected to see a growth of 4.1 percent, 3.4
percent, and 3.2 percent, respectively.
Major oil exporters, Angola and Nigeria, hard hit by the slump in crude oil prices, are
projected to see a growth 2.5 and 2.3 percent, respectively.
Notably, this would be the first time Nigeria’s GDP would slump to 2.3 percent
growth since the return of democracy in 1999.
Analysts say the economic success story of the past 16 years is gradually turning
gloom as the country’s economic fortunes are fast dropping.
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