The International Monetary Fund (IMF) has said that the economy of Nigeria may likely dwindle because it is under performing below the forecast for the country.
The resident representative of IMF in Nigeria, Gene Leon, stated on Monday that the energy shortages and delayed budget affected the output in the country.
Nigerian economy experienced deflation of 0.4 percent in the first half of the year but Leon has forecast that there will be more growth in the second quarter but such growth will not be enough to upturn the earlier shrinkage.
“I think there is a high likelihood that the year 2016 as a whole will be a contractionary year,” he was quoted by Bloomberg,
“While the economy should look better in second half of the year, growth will probably not be sufficiently fast, sufficiently rapid to be able to negate the outcome of the first and second quarters”, he added.
He stressed the need for power stability which will help stable every other aspect of the economy.