Global rating agency, Fitch Ratings has projected a 2.6 percent growth in Nigeria’s Gross Domestic Product, GDP, for the year 2017.
This was contained in a statement released by the global rating agency on Tuesday, October 18. It stated that economy will bounce back in 2017 with a GDP growth of 2.6 percent.
Fitch stated, “We expect real GDP to contract by 1.0 percent in 2016, compared with our earlier forecast of a 1.5 percent expansion. We expect a limited bounce back and forecast a recovery to 2.6 percent next year, with downside risks if dollar liquidity remains tight.The medium-term growth outlook remains significantly lower than the 5.6 percent growth seen in 2010-14.”
“Our revisions incorporate a weaker-than-anticipated first half performance. GDP shrank 2.1 percent YOY in 2Q16, the second consecutive fall. Much of the contraction was due to falling oil production, which shrank from an average of 2.1 million barrels per day (mbpd) in 1Q to 1.7mbpd in 2Q.
“An improving situation in the Niger Delta region will prevent further production loss, but levels are not likely to reach 1Q levels this year.”
“The non-oil sector shrank, by 0.4 percent, for the second consecutive quarter, because of spill over from the oil sector, energy shortages, and lack of foreign exchange for domestic industry.
Fitch had educed its forecast for the country’s GDP growth for 2016 to 1.0 percent from 1.5 percent, citing weak performance in the first half of the year, continuing policy challenges, including implementation of the new foreign-exchange regime and delays in the disbursement of the 2016 budget, it however
