Nigeria to Perform Better This Year
Nigeria to Perform Better This Year

Nigeria to Perform Better This Year

Nigeria to Perform Better This Year

Experts have predicted better performance of the Nigerian economy in 2018.
A financial analyst and head of the department of banking and finance at the Nasarawa State University, Keffi, Uche Uwaleke, said there will be tangible improvements in the economy going by the various parameters that support the countries revenue sources such as oil prices, AllAfrica reported.
Uwaleke also predicted that the monetary policy rates may likely be retained by the Central Bank of Nigeria in its first quarter meeting. “Headline inflation, which is beginning to prove sticky downwards, will spike in January. In response, the Monetary Policy Committee members in their meeting of January will leave the policy parameters (namely the monetary policy rate at 14%, cash reserve ratio at 22.5% and liquidity ratio at 30%) unchanged.
“There will be no significant departure from this monetary policy stance even during the MPC meeting of March,” he predicted. He also said economic activities in the first quarter of 2018 will be slow, especially on the part of foreign investors.
“The level of capital importation, comprising mainly portfolio investments, will not be significant relative to the third and fourth quarters of 2017 since foreign investors are likely to adopt a wait-and-see attitude during this period.
“Expectedly, the stock market will largely be bearish. The first quarter of 2018 will be a good time for risk-taking investors to take positions in undervalued stocks. Overall, economic activities will progress at a snail’s pace in the first quarter with higher unemployment rate than the previous quarter, a little shy of 20%.
“Real GDP growth rate, year on year, will likely hit the 2% mark but it will be more from base effect than actual expansion in economic activities considering that the economy was still in recession during the corresponding period of the preceding year,” he said.
The financial analyst however forecast higher economic activities in the second quarter. “The economy will be at a cruising point during the second and third quarters of 2018. Much of the expansion in economic activities will occur during this period.
“Improvements in security and oil infrastructure will likely boost oil production up to the level (2.3 million barrels per day) envisaged in this year’s budget.
“The IMF has forecast a real GDP growth rate of 2.1% for Nigeria while the federal government’s target is 3.5% as contained in the budget. Real GDP growth will lie somewhere in-between.”

Short URL : https://goo.gl/QQywAV
  1. https://goo.gl/viiEV4
  • https://goo.gl/iVXamk
  • https://goo.gl/DsXGHD
  • https://goo.gl/pttk7m
  • https://goo.gl/pLn3MH

You can also read ...

US Economy Back on Top of World Competitiveness Ranking
Marking its 30th edition this year, the IMD World...
Some 96% believe that bribery and corruption was an important issue to tackle.
Almost one out of two large global companies experienced some...
China Debt Crackdown Leaves Institutions Short of Cash
China is cutting off funds to financial companies and banks...
Deutsche Bank Will Cut 7,000 Jobs
Deutsche Bank said on Thursday it will reduce global staff...
Taiwan Growth Forecast Upgraded to 2.6%
The directorate general of budget, accounting and statistics...
Turkey Raises Rates Sharply to Prop Up Lira
Turkish President Recep Tayyip Erdogan is facing a potentially...
Two Oman Banks Discuss Merger
Oman Arab Bank has initiated merger talks with fellow Muscat-...
MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat.
Market sentiment was a little shaky on Friday with Asian...

Add new comment

Read our comment policy before posting your viewpoints