Earlier this year IMF cut its growth forecasts for the global economy on the back of a slowdown in China, looming recession in Russia and continuing weakness in the eurozone.
The Washington-based fund, while warning of a significant decline in growth rates across global economies especially among emerging markets including Nigeria’s against the backdrop of crash in oil prices, cut its 2016 forecasts from 4.0 per cent to 3.7 per cent.
Meanwhile, the Federal Government’s 2016 budget envisioned an expansionary fiscal measures expected to galvanize the economy to a growth momentum for the forecast GDP rate significantly above 4.0 per cent.
GDP is derived from the value of all goods and services available for final uses and export.
The expenditure approach measures the final uses of, or expenditure on the produced output, as the sum of final consumption expenditure; gross capital formation (investment activities carried out in the economy), and exports less imports.
Though the 2016 target is lower than 5.5 per cent revised projection in 2015 budget it is clearly ambitious in the light of revised figures given by multilateral institutions and several multinational and local financial institutions as well as real outcome recorded so far in 2015 fiscal year.
