“Inflation To Hit Double Digit in 2016” – NBS

According to the macroeconomic projections published by the National Bureau of Statistics, NBS, on the nation’s Gross Domestic Product (GDP), inflation, and merchandise trade spanning 2016 to 2019 will be at double digit in 2016.

This, will be the first time since 2012 that the inflation rate will cross the single digit.

However, the nation’s economy is expected to grow yearly by an average of 5.41 per cent between 2017 and 2019, the projection revealed.

“In the near term, the reset may not yield fruits as quickly as Nigerians expect. Economic growth in 2016 is expected to increase to 3.78% from 2.97% in 2015, an increase of less than 100 basis points,” the projection revealed.

The NBS projects that beyond 2016, growth is expected to be recorded as infrastructure developments take shape and provide support for both the oil and non-oil sectors.

The report also forecasted that inflation rate may rise from the current 9.55 per cent to 10.16 per cent in 2016.

However, the rate is expected to moderate beyond this year and average 9.01 percent between 2017 and 2019.

The projections indicated that the value of total trade is expected to slow in 2016, increasing by 2.41 per cent as a result of moderations in imports and exports.

Meanwhile, beyond 2016, both imports and exports are expected to increase and total merchandise trade is expected to average 15.61 per cent growth during the period.