.Says Nigeria will be affected by weaker china imports
Due to various economic factors including the normalization of Cash Reserve Requirements (CRR) by the Central Bank of Nigeria (CBN), the recent COVID-19 virus, among many others, influenced the Agusto Consulting prediction that Nigeria’s inflation rate would become slightly higher than the long-term rate of 12 per cent.
The consulting firm in a recent discussion on Nigeria’s macroeconomic outlook for 2020 and 2021, where it envisaged that the negative outlook for the economy within this period, including the normalization of the CRR, the recent COVID-19 virus, the net capital expenditure by businesses in the real sector and the net foreign investments, especially the FDI component.
Although, it projected a more positive key economic driver in 2020 and 2021, as the Banking sector loan will see some growth to the real sector and changes in level of non-oil tax revenue.
The consulting firm further predicted that in the midst of the coronavirus outbreak, Nigeria will be principally impacted more by weaker oil prices in first half (H1) 2020 and weaker imports from China.
It also, analyzed that the real Gross Domestic Product (GDP) growth was weak and below 3per cent and unemployment was very unlikely to improve.
On oil & gas export revenues, it highlighted that 2018 saw the highest revenue at $57billion and 2021 projected to hit $55billion.
Agusto & Co Consulting is a wholly-owned subsidiary of Agusto & Co., a foremost rating agency, with a deep knowledge of African economies and key industries, providing value-adding business solutions to a wide range of clients.