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Inflation to be at double digit this year – NBS

The macroeconomic forecasts published by the National Bureau of Statistics (NBS) on the nation’s Gross Domestic Product (GDP), inflation, and merchandise trade spanning 2016 to…

The macroeconomic forecasts published by the National Bureau of Statistics (NBS) on the nation’s Gross Domestic Product (GDP), inflation, and merchandise trade spanning 2016 to 2019 indicated that the inflation figure will be at double digit sometime this year.
This, will be the first time since 2012 that the inflation rate will cross the single digit.
However,  Nigerian economy is expected to grow yearly by an average of 5.41 per cent between 2017 and 2019, the projection revealed.
“In the near term, the reset may not yield fruits as quickly as Nigerians expect. Economic growth in 2016 is expected to increase to 3.78% from 2.97% in 2015, an increase of less than 100 basis points,” the projection revealed.
The NBS projects that beyond 2016, growth is expected to be recorded as infrastructure developments take shape and provide support for both the oil and non-oil sectors.
The report also predicted that inflation rate may rise from the current 9.55 per cent to 10.16 per cent in 2016.
However, the rate is expected to moderate beyond this year and average 9.01 percent between 2017 and 2019.
The projections indicated that the value of total trade is expected to slow in 2016, increasing by 2.41 per cent as a result of moderations in imports and exports.
Meanwhile, beyond 2016, both imports and exports are expected to increase and total merchandise trade is expected to average 15.61 per cent growth during the period.
In retrospect, the NBS reported that “growth in the economy in recent quarters has been significantly less than in previous years.”
“Growth in the third quarter of 2015 was 2.84 percent slightly higher than in the second quarter but still well below the average growth rate of 5.32 achieved between 2011 and 2014. This decrease can be attributed to the decline in the oil price as well as non-oil sectors that suffered setbacks during the year as political uncertainty coupled with supply shocks weighed on economic activity,” the report stated.

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