FDC ECONOMIC BULLETIN – NOVEMBER 22, 2019 (Re: Dodging the Recession Bullet – Nigeria grows at 2.28%)

Dear Subscriber,

Q3 GDP beats analysts expectations

The Nigerian economy expanded by 2.28% in Q3. Analysts expectations were for more somber numbers, owing to border closure and other constrictions. The economy showed resilience especially in the job elastic and interest rate sensitive sectors including, agric, manufacturing and construction.

The rate of growth is still way below optimal and a far cry from the ERGP target (4.5%). If Q4 GDP comes in higher at 2.3%, average growth in 2019 will be 2.2%. With the rising inflation trend, this growth is inadequate to make a dent on the rising unemployment (estimated at 30%) or an impact on the lives of the average citizen.

Output growth yet to translate to higher revenues

The expansion in Q3 GDP notwithstanding, corporate earnings are still languishing and investments are only in trickles. The economy needs a catalyst or booster shot to breakout from the vicious cycle of low growth.

In this publication, the FDC Think-Tank analyzes the GDP numbers for Q3 and its implications.

Do enjoy your read…