Macroeconomic Report & Economic Updates
April 4, 2017
Africa Economic Update (Issue 2)
Business activities in Africa
slightly improved in February 2017 albeit at a slow rate. Sales Managers Index
(SMI) for Africa an assessment of business condition in Pan-African Economy
increased by 0.4 index points from 52.2 points in January 2017 to 52.6 points
in February 2017. Sub-Saharan African countries experienced better
business activities than North Africa in the review period. The two largest
economies in the region, Nigeria (48.5 index points) and South Africa (49.2
Index points) registered contraction in the review period as Nigeria remained
in recession while high unemployment remained a problem in South Africa. The
growth in SMI recorded in the review period is driven by improvement in
business confidence and sales price which outweighed the fall in other
components market growth, sales output and staffing level.
Nigeria's Real Gross Domestic Product (GDP) increased at an annual rate of 0.55 percent in 2017Q21, compared to the -0.91 percent (revised) in 2017Q1 indicating the first quarterly positive growth rate since 2016Q1 and an evidenced exit from five quarters of economic recession. The acceleration in real GDP in 2017Q2 reflects the significant increase in oil sector GDP from -11.64 percent in 2017Q1, to 1.64 percent in 2017Q2 a 13.3 percentage points Quarter-on-Quarter increase. However, Non-oil GDP moderated by 0.3 percentage points to 0.45 percent. Despite the recent favorable economic performance, growth prospect remains fragile.