Nigeria Economic Outlook
August 25, 2020The economy likely contracted sharply in Q2 as the Covid-19 outbreak and oil price plunge took their toll. Secondary sources show that oil output declined steadily through the quarter in line with the OPEC+ production cut deal. Moreover, recently released labor market data showed that the unemployment rate climbed to its highest level in roughly a decade in Q2, which, coupled with higher inflation, should have weighed heavily on private consumption. Turning to Q3, although July’s PMI pointed to an improvement in business conditions for the first time since March, the gain was marginal and firms continued to cut employment. In addition, oil cuts will likely remain steep in Q3 as the country compensates for previous under compliance. Complicating matters, approval for a much-needed USD 1.5 billion World Bank loan is reportedly facing delays on lingering reform concerns.
Nigeria Economic GrowthThe pandemic and oil price shock is set to plunge the economy into a severe recession this year. Considerable job and income losses as well as likely lower remittances will hamper consumer spending, while business investment will be hammered due to greater uncertainty. Tighter FX liquidity, mounting inflationary pressures and subdued global demand cloud the outlook. FocusEconomics panelists see GDP contracting 3.4% in 2020, which is down 0.1 percentage points from last month’s estimate, and growing 2.3% in 2021.
Nigeria Economy Data
5 years of Nigeria economic forecasts for more than 30 economic indicators.
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|Bond Yield||11.10||0.0 %||Dec 31|
|Exchange Rate||306.5||3.08 %||Jan 01|
|Stock Market||0.1||0.0 %||Jan 07|
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Nigeria Economic News
September 15, 2020
Consumer prices rose 1.34% over the previous month in August, slightly above the 1.25% increase seen in July.
September 3, 2020
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose in August to 54.6 (July: 50.4).
August 24, 2020
The economy was dealt a severe blow by the oil price slump and Covid-19-induced restrictions in the second quarter.
August 16, 2020
Consumer prices rose 1.25% in July over the previous month, marginally above the 1.21% increase seen in June.
August 5, 2020
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) climbed from 46.4 in June to 50.4 in July.