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Economic & Financial Analysis of Nigeria

In: Business and Management

Submitted By sampah
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Economic and Financial Outlook in 2015
External Shocks Creating New Opportunities

FSDH Research January 2015

Economic and Financial Outlook: 2015-2019

1.0 Global Economic Growth: According to the World Economic Outlook (WEO) Update of the International Monetary Fund (IMF), January 2015 Edition, the global economic growth is forecast at 3.5% and 3.7%, for 2015 and 2016 respectively. The forecasts were reviewed downward by 0.3%
The IMF forecasts a global economic growth of 3.5% and 3.7% for 2015 and 2016 respectively.

relative to the October 2014 WEO. The revisions reflect a reassessment of prospects in China, Russia, the Euro-area, and Japan as well as the weaker activity in some major oil exporters because of the sharp drop in oil prices. The United States (U.S.) is the only major economy for which growth projections have been raised upward. The IMF added that the global growth will receive a boost from the lower oil prices. However, this boost is projected to be more than offset by the negative factors, including investment weakness as adjustment to diminished expectations about medium-term growth continues in many advanced and emerging market economies. The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016, supported by domestic demand due to lower oil prices, more moderate fiscal adjustment, and

The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016.

continued support from an accommodative monetary policy stance, despite the projected gradual increase in interest rates. The Euro-area is forecast to grow by 1.2% and 1.4% in 2015 and 2016 respectively. The growth would be driven by lower oil prices, further monetary policy easing, a more neutral fiscal policy stance, and the recent Euro depreciation. These factors are expected to be offset by weaker investment prospects,

The Sub-Saharan Africa growth...

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