Dear Subscriber,

Nigerians received the news of the end of the recession with mixed feelings, doubts by many and relief by most. The question that lingers is how soon will I feel the impact? The reality is that the growth rate is lower than the population, which could confirm the Malthusian theory, which states that population grows at a geometric progression while output grows at an arithmetic rate.

We are also forecasting that headline inflation will decline marginally in August to 16.03%. If our forecast is accurate this will further embolden the doves in the MPC to call for an accommodative monetary policy stance at its September 25/26 meeting.

In this edition of the FDC Bi-monthly publication, the FDC Think-Tank addresses these and other developments within the domestic macroeconomic environment.

Enjoy your read,