Moody’s predicts 2.3% growth for Nigeria in 2019

Moody’s Investors Service has predicted that Nigeria’s Gross Domestic Product (GDP) will grow by 2.3 per cent in 2019, slightly higher than an estimated 1.9 per cent in 2018.

It stated this in a report titled: “Sovereigns — Sub-Saharan Africa: 2019 outlook negative as fiscal, external challenges persist despite easing pressures,” released on Monday.

The global rating agency expects Africa’s gradual economic recovery of 2018 to continue this year, with regional real GDP growth anticipated to accelerate to 3.5 per cent in 2019, from an estimated 2.8 per cent in 2018.

It explains that Nigeria and South Africa are expected to recover slowly, but growth in the two countries would remain well below levels seen in the first half of the decade.

In general, it stated that sub-saharan African sovereigns’ negative outlook for 2019 reflects credit challenges that stem from fiscal and external vulnerabilities amid tightening global liquidity conditions and rising global trade tensions, despite gradually improving growth prospects.

According to the report, going into 2019, 15 of the 21 sovereigns that Moody’s rates in the Sub-Saharan Africa (SSA) region have a stable outlook, while six hold a negative outlook.

“Our negative outlook for sovereigns in Sub-Saharan Africa is driven by persistent credit challenges related to their ongoing fiscal and external vulnerabilities,” Assistant Vice President — Analyst and author of the report, Daniela Re Fraschini said.