Global Economy –Rundown:
Based on the recently reviewed Global Economy outlook, International Monetary Fund have downgraded its global forecast further down as additional data collated revealed the magnitude of financial resources devoted to curbing and stemming the COVID-19 pandemic. The Fund now anticipate a global economic contraction of about 4.9% for the year, as against the earlier contraction estimated at 3%. This adjusted estimate was fueled by the worsened pandemic in many countries, leveled off in others, deep downturn in economic activities, dip in consumption and services output, global trade contraction and weakening inflation, while the fund has warned that recent projection is still clouded with uncertainty, as it asserts that the level economic activities will hinge on global supply chains changes, length of time of the pandemic, and labour market dynamism.
Domestic Economy –Rundown:
According to IMF recent report, the Nation’s Economy growth was projected for contraction of about 5.4%, this depicts a further dip in its earlier economic forecast that projected a 3.4% economic contraction projection, as at April. The contraction projection was fueled by the ripple effect of Covid-19 pandemic, as measures implemented to stem the outbreak has resulted in varying degrees of economic disruption, and according to the IMF, the Virus is expected to be contained by the third quarter, another headwind confronting the Nation’s is the dwelling Crude Oil Price that has hampered the government Revenue capacity, recent data revealed that an expected decline of about N140bn will be eroded due to compliance with the recent OPEC production cut.