11 Nov Nigeria Macroeconomic & Markets Report, October 2019
REPORT SUMMARY
The Macroeconomy
- Nigeria’s crude oil output declined for the second month in a row
- Headline inflation ticked higher although core inflation overtook food inflation
- Capital importation was more modest in January
- Growth rate in the PMI index declines
The Financial Markets
- Fixed income markets maintain their bullish momentum
- The Naira gains marginally for the second consecutive month
- Equities market began to lose steam by month end
Our Expectation for the Coming Months
- Oil prices to struggle to remain buoyant in the face of the Coronavirus threat and weakening demand
- Headline inflation is expected to increase further as the underlying of core and food inflation face significant upward pressure
- Foreign flows will remain positive due to attractive OMO yields
- PMI could trend marginally lower as economic activity remains weak
- The Naira is expected to remain stable, albeit with continued pressure.
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