Is Nigeria Out of Recession?
Although inflation has dropped for the past two consecutive months, prices of food items remains high and the naira is still trading at over 400 naira to the dollar. But a London based organization is declaring Nigeria free from recession.
The declaration was made by the London-based World Economics, which noted that the recession had seen the death of businesses and caused hardship.
World Economics, which focuses on producing financial analysis on world economy, said 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, “a slowing trend has developed for the past 9 months”.
“The challenges and the recent changes to the Naira’s foreign exchange 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”, the organisation added.
The International Monetary Fund (IMF) has forecast 2.6% growth for sub-Saharan Africa in 2017.
The Fund also projected Nigeria’s economy to grow by 0.8% 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,” said IMF Chief Economist, Maurice Obstfeld who unveiled the fund’s World Economic Outlook in Washington on Tuesday.