Following the improvement of the macro economic prospects in Africa, a wealth management investment company, UBS International, has said that Nigeria’s economic growth rate may not likely to return to its previous high, after recovering from recession this year.
According to the company; the Head of Emerging Market Asset Allocation, Michael Bolliger said: “As Nigeria , the largest economy in Africa, recovers from recession this year, it is unlikely that growth rates will return to previous rate. A determining factor for the country’s growth outlook will be a successful continuation of the Naira’s exchange rate liberalisation.”
In the same vein, the Head, central Africa UBS report, Ali Janoudi, explained, “The modest energy price recovery over the past 18 months has supported the growth potential of many African economies, especially Nigeria. The more optimistic outlook for sub-Saharan Africa should also affect Nigeria’s economy going forward as the region embarks on a new phase of development.”
Meanwhile, the International Monetary Fund (IMF) forecasts real GDP growth to almost double 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. Key drivers supporting the outlook include rising global growth and trade.