COVID-19: IMF says Nigeria may experience worst recession in 30 years as EU donates €50m

 COVID-19: IMF says Nigeria may experience worst recession in 30 years as EU donates €50m

The International Monetary Fund (IMF) has predicted Nigeria could be heading into its worst recession in the last 30 years due to the outbreak of the pandemic.

The organisation made this known in its April 2020 World Economic Outlook report released on Tuesday in Washington.

According to the IMF chief economist and director of the research department, Gita Gopinath, Nigeria’s economy will recede by 3.4% in 2020 due to the disruption in global supply chains as result of the novel disease.

Gopinath added that the recession to be experienced would be the worst since the Great Depression that occurred between 1929 and 1932 when the advanced economies shrunk by 16%.

“For the first time since the Great Depression, both the advanced economies and emerging and developing economies are in a recession,” she said in a press briefing that marked the beginning of the April 2020 Spring meetings that is holding virtually.

“For 2020, growth in advanced economies is projected at -6%. Emerging markets and developing economies which typically have normal growth levels well above advanced economies are also projected to have negative growth of -1% and -2.2% if you exclude China.”

Meanwhile, the European Union has thrown its weight behind Nigeria in the fight against the coronavirus pandemic with a €50 million

The Special Adviser to the President on Media and Publicity, Femi Adesina announced this via his social media page on Tuesday.

The announcement of the donation comes about the same time when President Muhammadu Buhari, received in audience the EU Delegation at the Council Chambers, State House, Abuja on Tuesday.

According to the president’s spokesman, Head of the EU delegation at the event, Amb Ketil Karlsen, while disclosing the donation, lauded the Buhari for extending Lagos, Ogun, and Abuja lockdown.

Adesina wrote: “EU gives Nigeria a grant of 50 million Euro to fight COVID-19.”

Similarly, the Personal Assistant on New Media to the President, Bashir Ahmad, who also confirmed the donation said: “The European Union has donated a grant of €50 million to the Federal Government, their contribution to Nigeria’s fight against #COVID19, the Head of EU delegation, Amb. Ketil Karlsen announces the donation at a meeting with President @MBuhari today in Abuja.”

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