Macroeconomic Report & Economic Updates
May 10, 2017
Nigeria Economic Update (Issue 16)
Recently
released World Economic Outlook by the International Monetary Fund (IMF)
projects economic activities to increase significantly in developing countries-
especially Nigeria. Annual real output is expected to grow by 0.8 percent in
2017 from the contraction of 1.5 percent in 20161. Improvement in
economic activities is hinged on prospective favorable effects of continued
increase in commodity export price (Crude oil is expected to increase to $55
per barrel in 2017 compared to $46 in 2016).
Related
CPI And Its Component And Premium Motor Spirit
CPI and its Component: Changes in inflation rate has mostly been driven by the Core sub-index component. Precisely, in 2016 Q1 and Q2, the rising cost of import, electricity and transport drove inflat
Nigeria Economic Update (Issue 17)
Activities
in the manufacturing sector remained at levels recorded in 2016Q3.
Specifically, manufacturing capacity utilization (a measure of potential
manufacturing output that is actually realized) remained at 48.46 percent in
2016Q4 below average. During the quarter, structural bottlenecks
such as epileptic power supply (average of 2, 548 Megawatts) in
addition to forex constraints, hampered manufacturing activities. As such, high
cost of raw materials and cost of production subdued activities in the short
term. Recent efforts by the monetary authority to increase forex access to the
manufacturing sector as well as improvement in gas supply and electricity
generation would help minimize production costs and enhance production process.