While the external shock to fuel and food prices will push up inflation in the short run, the disinflation path is projected to continue in the second half of the year.
She advised policymakers to prioritise macroeconomic and financial stability in the short term.
The International Monetary Fund has endorsed Nigeria’s ongoing bank recapitalisation drive.
“Once again, the global economy is threatened with being thrown off course—this time by the outbreak of war in the Middle East,” the IMF said.
The IMF’s economic counsellor and director of research, Pierre-Olivier Gourinchas, said this at the ongoing IMF/World Bank Spring Meetings in Washington, D.C. on Tuesday.
The IMF, the World Bank, and the WFP have pledged coordinated support to countries affected by the Middle East crisis, focusing on economic stability and food security.
IMF urged Japan to continue tightening monetary policy and refrain from cutting its consumption tax.
The IMF said that, among advanced economies, growth was projected at 1.8 per cent in 2026 and 1.7 per cent in 2027.
Mr Banga said that the World Bank had identified five sectors with the potential to create jobs.
