Afrinvest Says Election Preparations May Affect Growth

• Afrinvest Says Election Preparations May Affect Growth

Preparations for the 2019 general elections may cause economic growth to retract in the second half of this year, a research and investment advisory firm, Afrinvest (West Africa) Limited, has predicted.

According to analysts at the firm, this year appears to be one of two halves in which sizeable growth in the Gross Domestic Product will be witnessed in the first half while a retraction in growth will be likely in the second half.

Afrinvest on Tuesday released its 2018 outlook for the economy and financial market in a report titled, ‘The Virtuous Cycle… Again!’.

The report offers an assessment of growth prospects in 2018, in light of the notable recovery of the Nigerian economy in 2017.

In a statement by the research firm, the Group Managing Director, Afrinvest, Ike Chioke, was quoted to have said, “2017 was indeed a year of recovery for the Nigerian economy. Through deliberate efforts from the government, we saw a rebound in economic activity, as well as strengthened investor confidence and business sentiments.

“It is against the backdrop of these improving macroeconomic conditions that we have taken a positive outlook for 2018, as we expect the economy to continue on its positive trajectory since its recovery.”

He added, “Akin to our last two-year bull run in 2012 and 2013, we have been ushered into a “virtuous cycle” marked by stability in external sector indicators and fiscal balance, declining inflationary pressures, improving growth profile, increasingly accommodative monetary policy and strong capital market returns.”