Nigeria Is Moving Out Of Recession – UBS
The Head of Emerging Market Association at UBS (United Bank of Switzerland) Michael Bolliger has said that Nigeria, Africa’s largest economy, is expected to recover from economic recession this year.
He said in a report that, “it is unlikely that growth rates will return to previous heights and a determining factor for the country’s growth outlook will be a successful continuation of the Naira’s exchange rate liberalization.”
The head of Africa UBS Chief Investment Office (CIO) on sovereign credit prospects Mr. Ali Janoudi Said, “The report indicates that the price recovery over the past 18months has supported the growth potential of many African economies, especially Nigeria.”
He also said that more optimistic outlook for sub-Saharan Africa would affect Nigeria’s economy going forward as the region embarks on a new phase of development.
Jinoudi said further that, “Africa has been hit by a range of issues in recent years like the commodity super cycle, depreciating exchange rates and mounting public debt ratios.
The International Monetary Fund (IMF) forecasts real GDP growth almost doubled this year in Sub-Saharan Africa, reaching 2.6 percent, while fiscal and current account deficits are expected to have peaked at 4.5 percent and 4 percent last year, respectively.
The report however revealed that macroeconomic prospects have improved.