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AfDB Projects 3.8% GDP Growth for West Africa

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Commodities Exchange

The African Development Bank has predicted an average growth rate of 3.8 per cent in the Gross Domestic Product of West Africa economies.

The bank made the prediction in its publication, ‘African Economic Outlook’, which now comes in four regional editions.

In a statement made available to our correspondent in Abuja on Monday, the bank said unimpressive performance in Nigeria in 2016 resulted in stagnation in the West African region as the nation accounts for about 70 per cent of the regional economy.

According to the bank, following the recovery experienced in Nigeria and other West African countries in 2017, growth in the GDP is expected to rise to 3.8 per cent in 2018 and move up to 3.9 per cent in 2019.

The AfDB stated, “After several good years, economic growth in West Africa stagnated at 0.5 per cent in 2016. The decline in the price of raw materials and the unimpressive performance of Nigeria, which alone accounts for about 70 per cent of the sub region’s GDP, were some of the key factors identified as responsible for stagnation.

“Economic growth in West Africa rebounded to 2.5 per cent in 2017 and is projected to rise to 3.8 per cent in 2018 and 3.9 per cent in 2019. Household consumption and the relative price recovery of certain materials are expected to contribute to this performance.”

The Deputy Director-General, African Development Bank for West Africa, Marie-Laure Akin-Olugbade, identified job creation, especially for young people, as the big challenge for the sub-region.

She stated, “The 2018 Regional Economic Outlook for West Africa presents a comprehensive analysis of the economy and the labour market of 15 countries, focusing on macroeconomic stability, employment and poverty of the population living in West Africa.

“Let us not forget that some of the countries in this sub-region are facing enormous security challenges.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Economy

President Buhari to Sign 2020 Revised Budget Today

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Muhammadu Buhari

Buhari to Sign 2020 Revised Budget Into Law on Friday

President Muhammadu Buhari will sign the 2020 revised budget on Friday, according to the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed.

Ahmed disclosed this on Thursday after a meeting with the leaders of the National Assembly on the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper.

Ahmed said, “In keeping strictly with the January–December budget cycle, the President will tomorrow (Friday) sign into law, the revised N10.8tn budget for the year 2020, which was passed by the National Assembly in June.

“This for us is a journey towards ensuring that the progress that we have made as a collective to return the fiscal year to January – December is maintained for the 2021 budget as well.

“The President has directed that we must deliver the budget to the National Assembly by the end of September.”

Ahmed further stated that between the months of January and May 2020, the Federal Government generated N1.48 trillion in revenue, 56 percent of its initial target.

She added that out of all the total amount generated as revenue during the period, oil revenues were N701.6 billion while the non-oil tax revenues accounted for N439.32 billion.

Companies Income Tax and Value Added Tax contributed N213.24 billion and N68.09 billion, respectively. The Customs realised N158 billion during the period under review.

She said, “Other revenues amounted to N339.51bn, of which independent revenues was N80.22bn.

“Recoveries and stamp duty collected during the period are yet to be booked in the fiscal accounts.”

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Economy

Africa’s Economy to Contract by $236bn in Value in 2020 Says AfDB

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Investors

African GDP to Contract by $236bn in Value Says AfDB

The African Development Bank (AfDB) has said the ravaging COVID-19 pandemic could cost the entire African continent about $236.7 billion in cumulative Gross Domestic Product.

The bank disclosed this in its latest report on African Economic Outlook (Supplement) released on Tuesday.

The bank predicted that the damage could be far greater if the impacts of the pandemic persist on the continent beyond the second quarter of the year. It said this could lead to a bigger contraction in Africa’s GDP in 2020.

According to the bank, the continent’s Real GDP could contract by as much as 1.7 percent this year if the virus has a shorter duration. This represents about a 5.6 percent decline from the January 2020 prediction.

However, under a long term scenario into the second half of the year, this could result in a deeper contraction in GDP.

This, the bank said could lead to 3.4 contraction, up from the 1.7 percent projected under the shorter duration and represents a decline of 7.3 percent from the previous projection before the outbreak.

It, therefore, said the combined loss due to the COVID-19 pandemic in Africa could range between $173.1 billion and $234.7 billion in 2020-2021.

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Economy

Brent Crude Oil Maintains $43 Per Barrel Despite Surge in US Inventories

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Oil

Brent Crude Oil Sustains Upsurge Despite Rising US Inventories

Brent crude oil, against which Nigerian oil is priced, sustained its upsurge at $43 per barrel on Wednesday during the London trading session despite a report showing a build-up in the U.S. crude inventories in the week ended July 3, 2020.

Brent crude oil

According to the U.S Energy Information Administration (EIA) report released on Tuesday, crude oil production in the U.S is expected to decline by just 70,000 barrels per day from the 670,000 bpd previously predicted to 600,000 bpd.

While this was below the projected decline, it also points to a build-up in U.S stockpiles and suggested that oil production from the world’s largest economy may not decline as previously projected in 2020.

“The EIA’s forecast of a lower decline in U.S. output was partially offset by its outlook for firm demand recovery, which limited losses in oil markets,” Hiroyuki Kikukawa, general manager of research at Nissan Securities said.

“Still, expectations that the Organization of the Petroleum Exporting Countries (OPEC) and allies would taper oil output cuts from August and softer U.S. equities added to pressure,” he said.

The EIA projected that global oil demand will recover through the end of 2021 as demand was predicted to hit 101.1 million barrels per day in the fourth quarter of the year.

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