Economy | - Part 87

Nigeria’s external shocks raise economic vulnerabilities

Merrill Lynch projected Nigeria’s real GDP growth to decelerate to 3.5% in 2015 from an average annual growth rate of 5% between 2011 and 2014, due to the large terms of trade shock that has resulted from lower global oil prices. It said that the depreciation of the Nigerian naira would increase inflationary pressure and would weigh on domestic consumption that is heavily dependent on imports. In addition, it forecast the inflation rate to average…

Fitch says South Africa’s budget highlights deficit challenges

Posted on by The Editorial Team

Fitch director for sovereigns Carmen Altenkirch said the rating agency had previously highlighted that weak economic growth and a failure to boost potential growth were a negative rating trigger. The outlook for public finances would form an important part of Fitch’s next scheduled review of SA’s sovereign ratings on June 5, the agency said on Thursday. Ms Altenkirch said Fitch’s sovereign credit rating for SA of BBB with a negative outlook recognised economic growth and…

Ghana govt, IMF agrees on $940milion support reform plan

Posted on by The Editorial Team

The loan, which could receive final approval in early April, would back a program aimed at boosting economic growth and tightening fiscal discipline. Ghana would implement its reform program under a three-year Extended Credit Facility arrangement from the IMF, which is still subject to approval by the IMF’s management and Executive Board. One of the priorities of Ghana’s program is to restore debt sustainability through a sustained fiscal consolidation. Offshore oil production came on stream…

Drop in oil prices to impact Angolan public finances

Posted on by The Editorial Team

Business Monitor International (BMI) projected real GDP growth in Angola to decelerate from 4.1% in 2014 to 3.8% in 2015, assuming an average global oil price of $55 per barrel. It said that the non-oil economy has been the main engine of activity in recent years, but most of the growth has been indirectly underpinned by oil revenues channelled through government spending. As such, it expected cuts in government spending on the back of lower…

Moody’s assigns (P)B1 to Côte d’Ivoire

Posted on by The Editorial Team

Moody’s Investors Service, Inc. (Moody’s) has assigned a provisional long-term (P)B1 rating to the Government of Côte d’Ivoire’s forthcoming bond issue. The senior unsecured bond will rank pari passu with all of Côte d’Ivoire’s current and future senior unsecured debt. The rating is aligned with Côte d’Ivoire’s long-term issuer rating of B1. Moody’s currently has a positive outlook on Côte d’Ivoire’s issuer rating. The provisional (P)B1 rating is based on the preliminary prospectus dated 13…

Nigeria: election delay heightens risks

Posted on by The Editorial Team

On Saturday, 7 February, the Nigerian presidential election was officially postponed from 14 February to 28 March due to security concerns. The opposition party, the All Progressives Congress (APC), has called this a “setback for democracy”. They claim that the incumbent People’s Democratic Party (PDP) may be using the terrorist insurgency in the Northeast as an excuse to delay an election they believe they cannot win.With this election set to be the closest since the end…

S&P may reduce Nigeria Credit Ratings

Posted on by The Editorial Team

S&P may cuts Nigeria Credit RatingsStandard & Poor’s Ratings Services put Nigeria’s credit ratings on watch for potential downgrade following the fall in oil prices and continued political instability according to S&P’s analysts led by Ravi Bhatia wrote in the statement: “Political risks also remain significant”. Nigeria is the latest country that S&P has docked for reasons related to oil. Its BB-rating is three notches below investment-grade territory. In light of the months long oil slump,…

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