Recession: With 0.6 % GDP, Nigerian economy will rebound this year…NSE
With a modest Gross Domestic Product (GDP) growth forecast of 0.6 per cent, the Nigeria stock Exchange (NSE) has predicted that Nigerian economy is expected to recover from its recession this 2017.
The Chief Executive Officer, NSE Oscar Onyema who made the forecast at NSE 2016 Market Recap and Outlook for 2017 disclosed that this recovery would be hinged on articulation of desired goals; lower rates of disruptions to oil infrastructure as a result of the resolution of the Niger Delta conflict; crude oil prices remaining above the Federal Government’s benchmark of $42.5 per barrel; and positive impact of the war against corruption manifested in the improvement in the ease of doing business in the country.
Notwithstanding the forgoing, Onyema said, the Nigerian capital market would have to do a better job at promoting its unique value proposition to both global and domestic investors.
Monetary policy, according to him, will continue to play a vital role in determining activity in the market, adding, “With forecasts for inflation expected to moderate due to the base effect, we believe that all things being equal, monetary authorities will have more flexibility with respect to interest rates and the foreign exchange regime.”
He said good coordination between the fiscal and monetary authorities should result in the resolution of the current structural deficiencies and drive economic growth.
Onyema further assured that the market would be listing more firms this year, noting that MedView Airline Limited would come on board by January 30, while Jaiz Bank Plc would follow suit before the end of the first quarter.
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