World Economics, a London-based organisation, declared yesterday that after a few quarters of negative growth that saw the death of businesses, the Nigerian economy has wriggled out of recession.
According to the organisation, which focuses on producing financial analysis on world economy, Nigeria’s “Market Growth Index grew to 58.5 in April as the monthly Sales Growth Index ticked up to 56.7, its highest value since 2015 and representative of rapid growth”.
Although the organisation acknowledged that Price inflation for April, which is tracked by the Prices Charged Index, remained high at 58.7 – indicative of high levels of inflation, it added however that “a slowing trend has developed for the past 9 months”.
Whereas conditions remain difficult for businesses in the country, World Economics said, “The challenges and the recent changes to the Naira’s FX rate are aiding sales transactions.
“Overall, conditions in Nigeria have improved further over the past month and managers are expressing renewed optimism that the economy will continue to grow and regain strength after the recession”, it added.
Also, in its Global Financial Stability Report for 2017, it claimed that economic activity has gained momentum, amid broadly accommodative monetary and financial conditions which have spurred hopes for reflation.
It said that this has given rise to longer term interest rates which, in turn, have helped to boost earnings of banks and insurance companies. Remarkably, the fund insisted that gains in many asset prices reflect a more optimistic outlook.