A research analyst at FXTM, a firm which specialises in forex trading, Lukman Otunuga, says Nigeria may experience growth in the third quarter of the year, despite “gloomy predictions” made by the International Monetary Fund (IMF).
Concise News recalls that the Bretton Woods Institution had last Tuesday, revised Nigeria’s economic growth from 2.1 percent in 2018 to 1.9 percent, saying the country is not performing up to its full potential.
However, in an interview with TheCable, Otunuga said the sustained increase in oil prices and the stability of the naira in the foreign exchange market could turn the country’s fortunes around.
The macroeconomic analyst also gave clarity to key issues related to a plan by Pakistan to approach the IMF for a financial bailout in the face of one of the worst economic crises the South Asian country has faced in recent times.
“The IMF’s gloomy growth projections for the Nigerian economy is based on trade tensions and stress in emerging markets weighing heavily on global sentiment. Although Nigeria’s weak GDP growth in Q2 raised some fears over the economy, there is still some light at the end of the tunnel.
“With global oil prices rallying to multi-year highs and the Naira witnessing stability against the Dollar in foreign exchange, Q3 growth could offer a pleasant surprise.
“It will be interesting to see if the central bank of Nigeria is able to cut interest rates before the end of 2018 in an effort to support growth,” Otunuga added.
Otunuga furthered that the “IMF-backed programme may be the bitter pill the Pakistan economy needs, especially when considering how concerns remain elevated over the nation defaulting on foreign payments”.