Nigerian Economy Starts to Climb Out of Recession

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  • Market Growth Index above 50 for the first time in 11 months
  • Monthly sales pick up sharply in March
  • Rate of price inflation remains substantial
Reports from March Sales Managers’ Index (SMI) data suggests that the Nigerian economy is starting to grow out of the recession which saw 10 months of consecutive contraction.
The Market Growth Index grew to 53.5 in March as the monthly Sales Growth Index edged up to 51.3, its highest value since March 2016. 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. 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.

The February inflation report released in March by the National Bureau of Statistics revealed that the rate slowed down in February for the first time in 15 months.

“The market growth index grew to 53.5 in March as the monthly sales growth index edged up to 51.3, its highest value since March 2016. 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.

“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.”

World Economics says the Sales Managers’ Indexes provide the earliest monthly data on the speed and direction of economic activity in the fastest growing areas of the world: Africa, Asia and the America’s.

The World Bank had earlier projected that Nigeria will get out of recession in 2017 and the economy would grow by one percent.

The recession currently experienced is the worst in almost three decades.

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