Different IMF takes on fiscal policy, Nigeria’s funding gap

The IMF’s campaign encouraging governments to broaden fiscal support to prop up recoveries does not seem to extend far and wide. While the Fund appears to be backing a pause in Kenya’s fiscal consolidation plans this year, the IMF has not offered similar endorsements to South Africa. To the contrary, its government was urged to rein in debt – a key reason why we think the economic recovery will be weak. Meanwhile in Nigeria, there is probably more, not less, deficit monetisation on the horizon.