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Nigeria’s Economy out of Recession – World Economics

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The Nigerian economy which recorded negative growth and crept into a recession in the last months has gotten out of doldrums and bounced back from recession.

The declaration was announced by a London-based organisation, World Economics, which said that the recession had saw the death of businesses and caused hardship.

World Economics focused on producing financial analysis on world economy, Nigeria’s “Market Growth Index grew to 58.5 in April as the monthly Sales Growth Index ticked up to 56.7, its highest value since 2015 and representative of rapid growth”.

It said although Price inflation for April, remained high at 58.7 – indicative of high levels of inflation, it added however that “a slowing trend has developed for the past 9 months”.

“The challenges and the recent changes to the Naira’s FX rate are aiding sales transactions. Overall, conditions in Nigeria have improved further over the past month and managers are expressing renewed optimism that the economy will continue to grow and regain strength after the recession”, it added.

The International Monetary Fund (IMF) has forecast 2.6 per cent growth for sub-Saharan Africa in 2017.

IMF projected Nigeria’s economy to grow by 0.8 per cent this year, despite current economic realities.

“Output in Nigeria is projected to grow by 0.8 percent in 2017 as a result of a recovery in oil production,” so said IMF chief economist, Maurice Obstfeld who unveiled the fund’s World Economic Outlook in Washington yesterday.

“In sub-Saharan Africa, a modest recovery is foreseen in 2017. Growth is projected to rise to 2.6 percent in 2017 and 3.5 percent in 2018, largely driven by specific factors in the largest economies, which faced challenging macroeconomic conditions in 2016.

After contracting by 1.5 percent in 2016 because of disruptions in the oil sector coupled with foreign exchange, power, and fuel shortages, output in Nigeria is projected to grow by 0.8 percent in 2017 as a result of a recovery in oil production, continued growth in agriculture, and higher public investment,” Maurice added.

6 Comments

  1. Toba Emmanuel

    April 19, 2017 at 11:58 am

    Good news!!! but let me ask has the price of foodstuffs in the market changed ? i beg let me hear words na big grammar i wan chop!!!

    • keke driver

      April 19, 2017 at 1:22 pm

      Calm your tities biko

  2. MeE!

    April 19, 2017 at 12:11 pm

    it’s a gradual process bro, you don’t just expect it drop down gbam! just like that… Good news.
    i can ask for things now without hearing “recession”
    I just hope we don’t go back to it again!

  3. nene

    April 19, 2017 at 1:10 pm

    how?

  4. Lacey

    April 19, 2017 at 6:50 pm

    I said it that Nigeria was going to come out of the recession 1st quarter of 2017, we are already in 2nd quarter !!
    My issue right now is , I don’t still understand how the $ is still over valued against the naira, because currently in the US, there is a lot of economic reform going and the returns on shale is not doing it for them ,while in the UK the uncertainty of Brexit is a depressing factor for the economy right now!!! If not for our thievery and backward thinking oldies leaders that refused to retire! But then are the Nigerian youths ready for the tough role of leadership with their BB mentality?

  5. nnenne

    April 19, 2017 at 11:17 pm

    So things are affordable in Nigeria now?
    OK. Good to know. So folks, no more begging on social media!

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