Nigeria Moving Out Of Economic Recession Soon– Report
A financial analysis organization, World Economics, on Tuesday released a report stating that Nigeria is on its way out of recession.
The report titled: Sales Managers’ Index (SMI), suggested that the Nigerian economy has started “growing out of the recession which saw 10 months of consecutive contraction.”
This is coming after the National Bureau of Statistics revealed that the inflation rate slowed down in February for the first time in 15 months.
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The data further noted that the country recorded a market growth index above 50 percent for the first time in 11 month in March 2017. “The Market Growth Index grew to 53.5 percent in March as the monthly Sales Growth Index edged up to 51.3 percent, its highest value since March 2016,” it said.
The report was however quick to point out that it is too early to speculate if the recovery is built on solid fundamentals for a sustained recovery but the changes reflected are not insubstantial.
It added that, “Price inflation for March, which is tracked by the Prices Charged Index, remained high at 61.3 – and indicative that very high levels of inflation continue.
“Overall, conditions in Nigeria have improved over the past month and managers are expressing optimism that the economy will continue to grow,” it stated.
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Recall that NBS, during the second quarter of 2016, released a Gross Domestic Product (GDP) figures confirming that the Nigerian economy is in recession.
According to the statistics, the GDP contracted by 2.06 percent following a contraction of 0.36 percent in the first quarter which officially places Nigeria in a recession, which is defined by two or more consecutive quarters of negative economic growth.
