The Nigerian economy is out of recession, “and growing strongly,” 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.
“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.”
Nigeria’s vital oil industry has been hit by weaker global prices, according to the Nigerian Bureau of Statistics (NBS).
But the government says there has been strong growth in other sectors.
Crude oil sales account for 70% of government income.
The price of oil fell from highs of about $112 a barrel in 2014 to below $50.
Outside the oil industry, the figures show the fall in the Nigerian currency, the naira, has hurt the economy.
Last week, 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.
SOURCE: African Spotlight