another hit

Nigeria: New wave of Covid Delta hits the country’s economic outlook

By Ruth Olurounbi

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Posted on August 30, 2021 07:22

A medical worker injects the AstraZeneca’s COVID-19 vaccine to a woman at the Nationa Hospital in Abuja © A medical worker injects AstraZeneca’s coronavirus disease (Covid-19) vaccine to a woman at the Nationa Hospital in Abuja, Nigeria 31 March 2021. REUTERS/Afolabi Sotunde
A medical worker injects AstraZeneca’s coronavirus disease (Covid-19) vaccine to a woman at the Nationa Hospital in Abuja, Nigeria 31 March 2021. REUTERS/Afolabi Sotunde

Nigeria’s economic outlook, released on 26 August by the National Bureau of Statistics (NBS), had been projected to return to pre-pandemic levels due to an oil market rebound. But it now faces risks from new coronavirus threats and a slow rollout of vaccines.

Nigeria, however, is not the only country worried about the impact of stronger coronavirus variants.

The emergence of highly infectious virus variants “could derail the recovery and wipe out $4.5trn, cumulatively, from global GDP, by 2025,” the International Monetary Fund said in a 27 July press briefing.

“Financial conditions could also tighten abruptly, if there is a sudden reassessment of the monetary policy outlook, especially in the United States. A worsening pandemic and tightening financial conditions would inflict a double blow to emerging markets and developing economies and severely set back their recoveries,” it added.

Economic growth predictions

The IMF’s estimates show that Nigeria’s economy will grow to 2.5% this year amid insecurity issues that have disrupted supply chains, even as restrictions on foreign exchange continue. The IMF sees the economy of Africa’s most

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