Afrinvest forecasts GDP growth of 2.1 per cent

Afrinvest (West Africa) Limited has forecast Gross Domestic Product (GDP) growth to accelerate to 2.1 per cent in 2018 from its full year estimate of 0.7 per cent for 2017 based on rebound in non-oil sector and oil sector low base push.
The investment group made the forecast  at the press launch of its 2018 Outlook for the Nigerian Economy and Financial Market in a report titled, ‘The Virtuous Cycle… Again!’
The company stated that major downside risks to its forecast include the Organisation of Petroleum Exporting Cohntries (OPEC)/non-OPEC decision on Nigeria’s production cap, development in the oil market and stability in the Niger-Delta.
The Group Managing Director of Afrinvest, Ike Chioke, explained that although price level growth disappointed in 2017, with Inflation rate still above MPR, the CBN began an easing cycle with the use of clearing rates at OMO auctions and frequency of auctions as policy instruments to achieve its easing objective. 
“Typically, what should follow the moderation in market rates and signify the full take-off of the easing cycle is a benchmark interest rate cut,” Chioke said.
The manufacturing sector has evolved over time, bringing both opportunities and challenges in a sector where business leaders cannot rely on old responses in the new manufacturing environment. This was showcased at the recently held Manufacturers Association of Nigeria’s (MAN) 50th Annual General Meeting and Awards.

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