Global audit firm, Pricewaterhousecooper in its recent forecast on the performance of the Nigerian economy in 2016, said it will struggle to grow at 4.0 per cent of Gross Domestic Product (GDP).
PWC said: “Our economists have developed three economic scenarios to help public and private sector organisations prepare for an uncertain environment in 2016. In these scenarios, we explored two types of shocks: an oil price shock and a political shock.”
“We expect that even under a benign economic scenario, the Nigerian economy will struggle to realise any growth much higher than 4.0 per cent.
“Nigeria’s economy has tended to suffer following an oil price crash, although its resilience has improved in more recent times. Getting the policy response right matters as falling economic growth imposes a real ‘human’ cost on the population,” PWC said in its recent 2015/2016 World Economic Outlook.
This is coming as the International Monetary Fund (IMF) recently cut Nigeria’s GDP growth forecast for 2016, to 4.0 per cent growth rate as the country continues to contend with the challenge of declining income from the drop in crude oil prices.
The latest growth forecast by the fund is 2.25 percentage points lower than its last year’s projection for Nigeria.
The multilateral donor agency stated this in its 208-page World Economic Outlook (WEO) titled: “Adjusting to Lower Commodity Prices,” released in Washington DC, recently.
