Nigeria’s economy grew in 4Q at the slowest annual pace since at least 2010, with oil production being the biggest drag, according to a new study by Bloomberg Intelligence.
The report says that GDP growth could be weaker still or even negative in the first half of 2016 because of the reduction in oil production after recent attacks from militants. With other parts of the economy already struggling, the full-year expansion might be the slowest in decades. A devaluation of the naira would add to risks for growth this year but boost the medium-term economic outlook.
The following are the key points in the Bloomberg Intelligence article written by Mark Bohlund (Sub-Saharan Africa and Middle East Economist, Bloomberg Intelligence) on Nigeria’s economy:
Growth of 2.1% in 4Q15 was the slowest since at least 1Q10, largely due to lower oil production.
- Pipeline blasts are likely to reduce oil production and economic growth further in 1H16.
- Further downgrades of full-year growth forecasts are likely.
You can download the full report here.