In the second quarter of 2017, the Nigerian economy witnessed positive momentum which marked the beginning of the recovery process from a grueling economic recession in 2016 with its attendant impacts felt in 2017. The Gross Domestic Product (GDP) grew for the first time since Q3 in 2015 by 0.55percent in Q2, 2017 and 1.4% by Q3, 2017. Higher oil output and positive dynamics from the agricultural sector helped the economy exit recession. The Oil and Gas recorded its best quarter since Q4 in 2014, with global oil price per barrel inching around $65 per barrel, and Government’s continued engagement with oil producing communities in the Niger Delta contributed immensely to the recovery in oil production experienced during the year.
Although the economy is still fragile, there are encouraging signs emerging. The World Bank has recently projected global economy growth of 3.1% with advanced economies at 2.2%, while developing economies at 4.5% and Nigeria to grow at 2.5%, though the International Monetary Fund (IMF) projected Nigeria’s growth at 1.9%. Other macroeconomic fundamentals include receding inflation rate in last six months currently at 15%, increasing foreign exchange reserves at over $40 billion presently, far-reaching reforms to the foreign exchange market, putting the official exchange rate at N305/$ while the parallel market is N365/$.
Read the full overview here. 2018 OUTLOOK: THINGS ARE LOOKING UP