Nigerian economy on recovery path-IMF

Afriquenligne (PANA)

19 Feb 2011

Nigerian economy on recovery path-IMF

The International Monetary Fund (IMF) has hailed Nigeria for the way it weathered the global economic recession and the banking crisis, according to local media reports on Friday. According to IMF, economic growth in the first half of 2010 remained above 7½ per cent and is expected to reach about 8½ per cent for the whole year, on the back of a recovery in oil production and continued strong growth in other sectors.

But IMF said inflation had been stuck in the low double digits for the past two years and foreign reserves have been falling, as the Central Bank of Nigeria (CBN) has focused on maintaining exchange rate stability and low interest rates.

It also observed that the fiscal stimulus intensified in 2010, notwithstanding the already solid growth performance and high inflation.