IMF slashes global economic growth in new projection
.Warns against uncertainty surrounding global economy weakness
.As Nigeria’s inflation hits 11.24% in September 2019
Channel Kogi’s N10bn through workers, not Bello, PDP tells NASS
The International Monetary Fund (IMF) has slashed global economy growth forecast in its October 2019 World Economic Outlook (WEO).
This is just as the National Bureau of Statistics (NBS) has said Consumer Price Index (CPI) which measures inflation increased by 11.24 per cent (year-on-year) in September 2019.
The IMF, however, pointed out that continuing trade conflicts in the longer term could also hurt global demand in oil, thus pushing the benchmark price lower which in effect would cause a contraction in Nigeria’s economic growth as the country is heavily dependent on oil exports.
The report revealed that the global growth estimate for 2019 was as high as 3.9per cent in mid-2018. However, economic momentum and weaker investment led to the slashing of the estimated growth as it reached a near standstill pace of 1.1% from 3.6% last year, though it also sees a pickup to 3.2 per cent in 2020.
This downward revision can be attributed to a number of factors such as continuing trade conflicts that have undercut business confidence and investment.
The IMF made it known that the trade policies of the United States President, Donald Trump is currently one of the biggest global threats as investors await clarity on the possibility that the U.S.-China talks will ease global uncertainties.
According to the IMF Chief Economist, Gita Gopinath, the global economy is experiencing “a synchronized slowdown and uncertain recovery. There is no room for policy mistakes and an urgent need for policymakers to cooperatively de-escalate trade and geopolitical tensions.” Gopinath said.
Meanwhile, the NBS in its latest report stated that the 0.22 per cent increase in the nation’s inflation for September was higher than the 11.02 per cent recorded in August 2019.
The bureau in its report on Tuesday said on month-on-month basis, the headline index increased by 1.04 per cent in September 2019, this is 0.05 per cent rate higher than the rate recorded in August 2019 (0.99) per cent.
The NBS report states: “The percentage change in the average composite CPI for the twelve months period ending September 2019 over the average of the CPI for the previous twelve months period was 11.268 per cent, showing 0.003 per cent point from 11.271 per cent recorded in August 2019.
“The urban inflation rate increased by 11.78 per cent (year-on-year) in September 2019 from 11.48 per cent recorded in August 2019, while the rural inflation rate increased by 10.77 per cent in September 2019 from 10.61 per cent in August 2019.
“On a month-on-month basis, the urban index rose by 1.13 per cent in September 2019, up by 0.09 from 1.04 per cent recorded in August 2019, while the rural index also rose by 0.96 per cent in September 2019, up by 0.03 from the rate recorded in August 2019 (0.93) per cent.
“The corresponding 12-month year-on-year average percentage change for the urban index is 11.63 per cent in September 2019.
“This is higher than 11.62 per cent reported in August 2019, while the corresponding rural inflation rate in September 2019 is 10.94 per cent compared to 10.95 per cent recorded in August 2019.”
The report by NBS said the composite food index rose by 13.51 per cent in September 2019 compared to 13.17 per cent in August 2019.
“This rise in the food index was caused by increases in prices of Bread and cereals, Oils and fats, Meat, Potatoes, Yam and other tubers, Fish and Vegetables.
“On a month-on-month basis, the food sub-index increased by 1.30 per cent in September 2019, up by 0.08 per cent points from 1.22 per cent recorded in August 2019.”
The bureau in its report said “average annual rate of change of the Food sub-index for the twelve-month period ending September 2019 over the previous 12-month average was 13.47 per cent, 0.01 per cent points from the average annual rate of change recorded in August 2019 (13.46) per cent.”
Inflation by state revealed that in September 2019, all items inflation on year on year basis was highest in Kebbi (14.09 per cent), Bauchi (13.74 per cent) and Plateau (13.25 per cent), while Delta (9.72 per cent), Bayelsa (9.40 per cent) and Kwara (8.46per cent) recorded the slowest rise in headline Year on Year inflation.
“On month on month basis, however, September 2019 all items inflation was highest in Kogi (3.18per cent), Ondo (2.17 per cent) and Kwara (2.02 per cent), while Kano (0.45 per cent), River (0.41 per cent) and Zamfara (0.33 per cent) recorded the slowest rise.
“In September 2019, food inflation on a year on year basis was highest in Niger (16.65 per cent), Nasarawa (16.57 per cent) and Abuja (16.31 per cent), while Akwa Ibom (11.72 per cent), Benue (11.22 per cent) and Bayelsa (9.95 per cent) recorded the slowest rise.
“On month on month basis, however, September 2019 food inflation was highest in Kogi (4.90 per cent), Delta (3.82 per cent) and Kwara (3.70 per cent), while Kano (0.18 per cent) and Zamfara (0.17 per cent) recorded the slowest rise with Rivers recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate),” the report added.
You must be logged in to post a comment.