South African Research Group, Standard Chartered Global Research, has released a report saying Nigeria’s economy’ll bounce back by December.
The Group in their report, show that Nigeria, the second largest economy in Africa, would have grown by 1.6% by the end of 2016.
The report in its gross domestic product (GDP) forecast for 2016, showed that Nigeria’s economy will grow at a faster pace than South Africa.
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The report projects that Nigeria’s economy will grow at 0.6% by the end of the fiscal year.
With such growth, Nigeria would have successfully emerged from its present “technical recession.”
South Africa overtook Nigeria as Africa’s largest economy on Thursday this week, with a GDP of $301 billion.
Nigeria’s Economy’ll Bounce Back
In July, a report by the International Monetary Fund (IMF) projected that Nigeria’s economy would shrink by 1.8% in 2016.
The IMF report stated that:
“The outlook for other emerging market and developing economies remains diverse.
“Growth projections were revised down substantially in sub-Saharan Africa, reflecting challenging macroeconomic conditions in its largest economies, which are adjusting to lower commodity revenues.
“In Nigeria, economic activity is now projected to contract in 2016.
“As the economy adjusts to foreign currency shortages as a result of lower oil receipts, low power generation, and weak investor confidence.
“These revisions for the largest low-income country are the main reason for the downgrade in growth prospects for the low-income developing countries group.”
Finance Minister, Mrs. Kemi Adeosun admitted in a recent interview that the country’s economy is in a recession.
Despite the prevailing recession, the government has expressed optimism, that the country’s economy will grow by over 3% in 2016.
Data released by the National Bureau of Statistics (NBS) show that the Nigeria’s economy declined by 0.36% in the first quarter of 2016.
Results for the second quarter of the year are expected to be released by the end of August.