Latest economic indicators are showing that after a few quarters of negative growth that saw the slow down of businesses, the Nigerian economy is out of recession, but “conditions remain
difficult for businesses,” World Economics said Tuesday.
World Economics is a London-based organisation dedicated to
producing financial analysis, insight and data relating to questions of key
importance to the world economy.
“April Sales Managers’ Index (SMI) data suggests that the
Nigerian economy is continuing to grow out of the recession which saw 10 months
of consecutive contraction in 2016,” it said in a release published on its
website.
“The 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. Price inflation for April, which is tracked by
the Prices Charged Index, remained high at 58.7 – indicative of high levels of
inflation – however, a slowing trend has developed for the past 9 months.”
Nigeria’s economy receded at the end of Q2 in 2016 after
falling oil prices ate deep into the country’s earnings and caused the naira to
weaken thereby causing inflation to spiral upward. Spates of attacks on oil
installations in the Niger Delta by militants, who were protesting for better
deals from the government, almost crippled oil production.
But the government’s recent engagements in the oil-rich
region, spearheaded by Vice President Yemi Osinbajo, has seen attacks on oil
facilities petered out, at least, for now.
Last Thursday, National Bureau of Statistics (NBS) said the
inflation rate dropped by 0.52 percent in March to close at 17.26 percent, the
second decline recorded in two months.
“This is the second consecutive month of a decline in the
headline CPI on a year-on-year basis,” NBS said in its report.
“It represents the effects of stabilising prices in already
high food and non-food prices as well as favourable base effects over 2016
prices.”
But World Economics noted that there are still issues the
economy handlers need to fix before it can be out of the woods.
The organisation said “panellists have explained that
although conditions remain difficult for businesses, they are adapting to 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.”
Source: The Guardian
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