Lagos International Monetary Fund, IMF has said Niger’s Real Gross Domestic Product, GDP is expected to grow to 6.5 percent (in 2014. This is coming on the heels of the discussions with the Nigerien authorities on the second and third reviews of the economic and financial program supported by the IMF’s Extended Credit Facility, ECF. Ekué Kpodar who led the IMF’s team said the 6.5% expected Real GDP growth in 2014 , will be mainly as a result of the expansion of the extractive industries sector, a better agricultural season, and an increase in public investments. However, he said inflation would remain contained below the 3% of West African Economic and Monetary Union, WAEMU convergence criterion. “The medium-term prospects remain subject to substantial external and domestic risks, including the fragile regional security situation and Niger’s vulnerability to natural disasters,’’ Kpodar said. According to the IMF, GDP was revised downward to 3.6% in 2013, a reduction of about 2.5% compared to the initial projections, and well below the 11% recorded in 2012 as a result of the start of oil production. The IMF team said the drop in GDP growth of the country was as a result of the negative effects of the regional security situation and the climate shock in 2013. However, Niger’s inflation remains relatively low at 2.5% in 2013, ‘’thanks in particular to the impact of the government’s food aid program, which help attenuate the increase of the prices of food products,’’ Kpodar said. “Program implementation has been broadly satisfactory in spite of a few difficulties encountered during the first half of the year. During the first ten months of 2013, the overall fiscal balance (commitment basis, including grants but excluding net lending) recorded a deficit equivalent to 2.7 percent of GDP and is estimated at 3 percent for end-December 2013, against a 4.3 percent GDP deficit initially projected in the program. This performance is mainly due to the fact that capital expenditure was lower than had been anticipated in the program,’’ he said. Nigerien authorities have expressed their strong determination to keep the economic and financial program on track. The authorities and the mission agreed on a set of structural measures to be implemented in 2014 with a view to strengthening budget execution, customs administration and fiscal revenue mobilization, and improving debt management.
By Kehinde Ibrahim,