IMF, has predicted that Nigeria’s economy will grow faster than South Africa’s in the 2018 financial year.

The International Monetary Fund, IMF, has predicted that Nigeria’s economy will grow at a faster rate than South Africa’s in the 2018 financial year.

This was contained in the IMF’s World Economic Outlook (WEO) for July 2017, which suggests that Africa’s largest economy Nigeria will grow at 1.9 percent in 2018, while South Africa will only climb by 1.2 percent.

Both continental giants will however grow slower than the estimated global growth rates for the coming year which has been put at 3.6 percent by the Bretton Woods institution.

“In Sub-Saharan Africa, the outlook remains challenging. Growth is projected to rise in 2017 and 2018, but will barely return to positive territory in per capita terms this year for the region as a whole—and would remain negative for about a third of the countries in the region,” the IMF said via WEO.

“The slight upward revision to 2017 growth relative to the April 2017 WEO forecast reflects a modest upgrading of growth prospects for South Africa, which is experiencing a bumper crop due to better rainfall and an increase in mining output prompted by a moderate rebound in commodity prices.

“However, the outlook for South Africa remains difficult, with elevated political uncertainty and weak consumer and business confidence, and the country’s growth forecast was consequently marked down for 2018”, it noted.

According to IMF forecasts, global growth will be driven by growths in the US and the UK, both of which are projected to grow at 2.1 percent and 1.5 percent respectively.

“Inflation in advanced economies remains subdued and generally below targets; it has also been declining in several emerging economies, such as Brazil, India, and Russia.”

South Africa recently plunged into recession after months of heightened social and political tensions, while Nigeria’s economy has witnessed early signs of recovery following stability in the oil sector and boost in Forex trade.