NKC African Economics - Daily Brief 18 Nov 2020

Nov 18, 2020

Nigeria

The latest readings for October fuelled some optimism that the economy may be back on a (fragile) recovery path. The manufacturing PMI climbed to a reading of 49.4 points – the highest level since the imposition of lockdowns and social distancing measures in Q2. The non-manufacturing PMI also reached a new seven-month high, although less robust at a reading of 46.8 points. The rebound remains especially fragile with the economy facing a number of challenges aside from the Covid-19 shock. Oil prices remain low – a situation which is only exacerbated by Opec+ production cuts. This, in turn, contributes to US dollar shortages. Tight FX liquidity, product shortages, flooding in certain areas, and security challenges, meanwhile, stoke price pressures.

Read the full research briefing: https://www.linkedin.com/smart-links/AQFxZKCGuiLG0g

 


Other news