The International Monetary Fund (IMF) has raised concern over spiral inflation in Nigeria and other African countries, warning that the pressure may push their economies to the brink.
Specifically, the global bank lamented that “the effect of higher good prices is being felt acutely as goods accounts for a higher share of income.
“Besides, inflation, fiscal, debt and balance of payments pressure are all intensifying”.
The Managing Director of the Global Bank, Kristalina Georgieva, at a meeting held this week with Ministers of Finance and Central Bank Governor’s on the continent disclosed that most countries on the continent could raise money from the global financial markets and do not have large domestic markets to turn to. She stated, “The particularly difficult conditions in many African countries at this moment is important to consider.
In my meeting with Ministers of Finance and Central Bank Governors from the continent this week, many highlighted how the effects of this, entirely exogenous, shock was pushing their economies to the brink. “The effect of higher food prices is being felt acutely as food accounts for a higher share of income. Inflation, fiscal, debt and balance of payments pressures are all intensifying. Most are now completely shut out from global financial markets; and unlike other regions don’t have large domestic markets to turn to.