The International Monetary Fund (IMF) released its revised World Economic Outlook for 2016 this week just in time for the 2016 IMF-World Bank spring meetings which commenced earlier today. The report titled, “Too Slow for too long” expectedly painted a grim picture of the global economic condition with the 2016 global growth forecast trimmed by 0.2% to 3.2% while growth forecasts across a broad spectrum of regions were also revised downward. The revision came against a backdrop of factors which have heightened uncertainty and subdued growth outlook.
The Buhari-led administration took over power following a peaceful and successful election 12 months ago, with a promise to stabilize the economy, stamp out insurgency and put an end to corruption. Devastated by the mixture of tumbling oil prices in the global market and poor domestic management, the government inherited an economy on the edge of a cliff. Chief among the disquieting challenges confronting the economy at the time included insurgency in the North-east, currency market instability, energy crisis and deteriorating economic fundamentals.
The CBN released its Purchasing Manager’s Index (PMI) survey report for March 2016 on the 31st of March. The survey, which gauges sentiment in the manufacturing and non-manufacturing sectors expectedly came weak with Manufacturing and Non-Manufacturing Composite indices declining for the 3rd consecutive month, albeit at a slower pace relative to February data.
Since the year began, the macroeconomic policy environment has been plagued with uncertainty, disconnect between policy objectives and real variables as well as worrying economic data. This week, the economy got a healthy dose of reprieve in both monetary and fiscal sides of policy management as the belated passage of the keenly contested 2016 budget by the National Assembly finally occurred while there are good indications that monetary policy is being realigned to focus on its key policy goals, albeit slowly.
The name`` Ikogosi Warm Springs’’ has become a household name in Ekiti State and the South-Western Nigeria in general for being a tourist centre.
The myths surrounding its origin and its therapeutic nature, believed to be cure for many ailments based on individual visitor’s faith has endeared it to many.
For a first time visitor or tourist to Ekiti State, the experience will be incomplete without seeing the confluence of the warm and cold springs.
One cliché that is habitually used by governments around the world is the phrase, “we are open for business.” Meanwhile, the distinguishing factors that separate those overusing this phrase from the others are the efficacy of their economic policies and budgetary performance.
Recently, the President of the Federal Republic of Nigeria, Muhammadu Buhari, also alluded to this saying when he presented the proposed 2016 budget, tagged, ‘The Budget of Change,’ to a joint session of the National Assembly on Tuesday, December 22nd, 2015.
The Monetary Policy Committee (MPC) at the conclusion of its 2nd meeting for the year decided to tighten its policy stance on key rates in the system. The Committee admitted that the sustained pressure in the domestic economy - as reflected in the sharp jump in inflation rate to 11.4%, rising unemployment rate (10.4%) and slowing GDP growth (2.8%) - is driven by structural weakness in the system. As against a dovish stance increasingly communicated by committee members in recent statements, the Committee surprisingly reverted to a hawkish stance by taking the following decision;
The Monetary Policy Committee (MPC) will be meeting next week (21st and 22nd March, 2016) - for the 2nd time in the year - since its last meeting in January 2016 to review developments in the domestic and global fronts as well as take key policy decisions. This meeting is coming against the backdrop of renewed optimism in the global economy, albeit tepid; sustained sub-optimal domestic economic performance and elevated headwinds on potential real economic growth and consumer purchasing power.
As central bank rhetoric turns more dovish, investors will search for further hints of easing in a week with few data releases to indicate whether years of loose monetary policy are having any material effect.
The European Central Bank chopped interest rates again and bolstered its asset purchase programme earlier this month. Surveys on Tuesday will give the first hints since then of any inflationary pressures building in the euro zone.