Nigeria in Looking Beneath the Surface
|
|
- Ella Osborne
- 5 years ago
- Views:
Transcription
1
2 Analysts Perspective. Nigeria in Formation The global economy outperformed most predictions in 2017, and the momentum is expected to continue in Interestingly thus far, the recovery is broad-based across most advanced, emerging, and developing economies. Back home, Nigeria s economy has recovered from the recession of 2016, and is forecast to grow at its fastest pace in two years in All economic indicators point to positive direction and the sound of downside risks is barely perceptible. While we share consensus view of broadly better economic prospect, we should also mention, in Nigeria s case, the strong commodity risk factor backing the outlook. As a result, in this edition of our report on Nigeria and its markets, we discuss the outlook for 2018 in three different scenarios and specifically, the implications of each scenario. We believe this is the best course to take during recovery in a suboptimally diversified economy, with weak stabilizers. This is the year to look beneath the surface! We base the scenarios on developments that are familiar with Nigeria, and hence, consider each of them a likely occurrence. But on balance, we rank the scenarios in order of likelihood. 2
3 Overview. GLOBAL Promising Growth Outlook Growth in 2017 and 2018 are expected to come stronger than anticipated at the end of H1-17. Led by developments in the advanced economies, the recovery is spreading to emerging markets, and outlook for developing countries is better, compared to a year ago. Equity Markets And the Bullish Run Continued Analysts Christian Orajekwe christian.orajekwe@cordros.com Peter Moses peter.moses@cordros.com Boluwatife Sorungbe boluwatife.sorungbe@cordros.com Janet Ogunkoya janet.ogunkoya@cordros.com Global equities had a bullish 2017, with markets within our coverage universe posting strong returns in both halves of the year. Unsurprisingly, activities in H2 broadly mirrored the H1 rally, as the factors which powered gains in the six months to June again played out (even stronger) over the latter half of the year. Crude Oil Market Price Rally; A Lasting Fanfare? While noting that favourable conditions for healthy oil price over 2018 exist in reasonable number, we should mention also that there is downside risk to this outlook. Worth mentioning, is our view that the hosts of factors that have supported prices to current levels are sensitive in nature and noting that there are already emerging concerns about the strength of their sustainability risk inflicting the type shock on oil-dependent countries. NIGERIA Growth What Next for Economic Recovery? Scenario 1 Real GDP grows by 4.87%. Enablers are (1) strong oil revenues amid higher crude oil price and production, (2) stronger and stable NGN exchange rate, (3) non-oil revenue benefits from a more visible tax reform and improved business climate, (4) efficient budget implementation, and (5) continued expansion in agriculture. Scenario 2 Real GDP grows by 2.63%. Enablers are (1) healthy oil prices and domestic crude production support oil earnings only below budget projection, (2) weak visibility around tax reforms constrains non-oil receipts, (3) business environment remains uncompetitive in the absence of meaningful structural reforms, and (4) aggregate demand grapples with sluggish improvement in inflation rate. Scenario 3 Real GDP growth contracts by 0.42%. Drivers are (1) oil revenue drops significantly as oil price crashes and domestic production turbulence resurfaces grinding production below 1.4mb/d, (2) non-oil revenue accretion slumps as activities across major subsectors nosedive, with sector players tussling 3
4 with acute foreign exchange shortage, (3) fiscal deficit widens, (4) monetary policy tightens to accommodate fiscal underperformance, ultimately crowding out private sector borrowing, (5) political tension heightens, and (6) popular reforms overtake structural reforms. Fiscal Policy Oil to the Rescue? Scenario 1 The assembly approves the budget in February, making for the signing into law in March. Revenue budget is 94% achieved. Borrowing requirements, the foreign components especially, are met as and when due. The government stretches to achieve 95% execution of the expenditure budget by the end of the budget year. Scenario 2 The assembly approves the budget in April, making for the signing into law in May. Revenue budget is 87% achieved. Borrowing requirements, the foreign components especially, are delayed, but eventually met. The government pushes for 90% execution of the expenditure budget by the end of the budget year. Scenario 3 The assembly approves the budget in June, making for the signing into law in July (vs. June in 2017). Revenue budget is 75% achieved. Country risk premium increases and naira borrowings take priority. To keep deficit within acceptable limit, expenditure is cut to 85% of budget, as was the case in oil revenue related challenging periods of 2009 and Exchange Rate More Grace from Oil? Scenario 1 The external reserve reaches USD56bn (from USD39bn). The CBN holds the Naira at NGN305, but increases flexibility in the management of FX. The naira appreciates in both the I&E and parallel markets by about 5-6% to NGN340/USD and NGN345/USD respectively. Drivers are (1) oil price of USD65-70/barrel and stable production of +2mbpd, (2) inflows from Eurobonds to fund 2018 budget deficit, and (3) strong portfolio inflows, owing to high oil earnings, compelling equities valuation, and relatively attractive FI yields. Scenario 2 The external reserve reaches USD47bn (from USD39bn). The CBN holds the line on the naira and does not increase flexibility in FX management. The naira trades between +/-2% of NGN360 and NGN363 respectively, at the I&E window. Drivers are (1) oil price of USD55-60/barrel and occasional, albeit modest cases of shortage in domestic production, (2) delayed Eurobond issues, consequently delaying impact on reserve, (3) election-induced increase in naira chasing after USD, and (4) moderate portfolio inflows, given less attractive FI (vs ) and equities valuation (after the 2017 bull run). Scenario 3 External reserve falls to USD30bn (from USD39bn). The current A/C balance enters negative and the CBN resorts to harmful exchange rate restrictions to stem the depletion of reserves. Pressure on oil earnings and CBN s policies force the FPIs to take to the sideline. After mush resistance, the CBN devalues by 20% to NGN363/USD. The I&E loses relevance and the parallel rate spikes to NGN497/USD. Drivers are (1) crash in oil price to USD30-35/barrel, (2) economic shock and harmful FX policies scare FPIs, and (3) suspension of external borrowings. 4
5 2018: Which Direction for Inflation Rate? Scenario 1 Inflation rate moderates to 9.74% in December, averaging 11.24% for the year. Enablers are (1) stronger naira exchange rate amid higher crude oil price and production, (2) stable energy prices -- electricity tariffs, and premium motor spirit (PMS) and diesel prices, (3) domestic food prices directly benefit from buoyant agriculture output, in addition to lower prices of imported food items, and (4) the apex bank keeps monetary policy tight, in its support for the FGN s activities in the local debt market. Scenario 2 Inflation rate moderates to 13.15% in December, averaging 13.15% for the year. Enablers are (1) the local currency see-saws, with gentle volatility, and ultimately stabilizes at 2017 levels amid modest-to-flattish growth in oil price and domestic production, (2) energy prices remain mostly unchanged, broadly influenced by political considerations, (3) the minimum wage discussion progresses at a slow pace, (4) the apex bank modestly lowers interest rate, and (5) domestic food prices benefit from a relatively healthy production. Scenario 3 Inflation rate rises to 18.02% in December, averaging 15.87% for the year. Drivers are (1) USD shortage resurfaces, reigniting foreign exchange crisis, as the country s external reserves come under pressure amid declining oil price and domestic production disruption, (2) energy prices go through the roof, (3) the FGN painfully raises the minimum wage bar amidst growing agitation among labour unions and in a bid to impress the electorates, and (4) increased election and campaign spending ahead of the 2019 general elections. Interest Rate 2018: What Comes After Loud Echoes of Easing? Scenario 1 Aggressive Easing: The MPC cuts MPR by 300 bps to 11.0%. Drivers are (1) crude oil prices advance, (2) zero domestic crude production turbulence, (3) NGN exchange rate stabilizes on improving external reserves, (4) government spending picks up (supported by higher federal revenue) (5) investment spend rises (following growing confidence in the broader economic landscape), (6) aggregate demand increases as inflationary conditions improve, (7) economic recovery accelerates, (8) productivity gains increase, and (9) notable success on external borrowing to augment the deficit in the budget. Scenario 2 Gradual, Modest Easing: The MPC cuts MPR by 100 bps (50 bps apiece over both halves of the year) to 13.0%. Drivers are (1) healthy crude oil earnings support steady accretion to the reserves, (2) naira remains stable, (3) inflation rate moderates slowly, (4) weak non-oil earnings pressure government expenditure, (5) private investment spending grapples with high interest rate environment, and (6) economic recovery progresses at a modest pace. Scenario 3 Further Tightening: The MPC hikes the MPR by 200 bps to 16.0%. Drivers are (1) oil price weakness blows up, (2) the external reserves face intense pressure, (3) FX crisis resurfaces, with significant LCY exchange rate depreciation, (4) supply-side induced inflation returns, and (5) output growth slows. 5
6 CAPITAL MARKET Equities After the Bull Comes Another Bull? Scenario 1 Equities return excess of 40%. Drivers are (1) higher than expected economic growth, (2) better-than-expected corporate earnings growth that eases valuation concerns, (3) strong portfolio inflows to historical high, (4) favourabe regulation, (5) M&A activities, and (6) significantly low FI yields. Scenario 2 Equities deliver 10-15% return. Drivers are (1) moderate economic growth, as widely expected, (2) stable to modest growth in corporate earnings (valuation concerns linger), (3) modest improvement in FPI flows, amidst growing opportunities across developed and EM/FM markets, and (4) lower than expected moderation of FI yields. Scenario 3 Equities deliver 20-25% negative return. Drivers are (1) economic and political shock, (2) very poor corporate earnings (which escalates valuation concerns), (3) MSCI delists Nigeria from its index, and (4) FPIs fly to safety. Fixed Income Which Path for Yields In 2018? Scenario 1 Significantly Lower Yields: Average T-bills yield on the 91, 182, and 364-day bills falls to 9.07%, 11.14%, and 12.03% respectively while average bond yield on the 5, 10, and 20-year bonds drops to 13.04%, 13.40%, and 14.0% respectively. Drivers are (1) global crude oil market rebalances, (2) domestic crude production rises, (3) naira exchange rate strengthens, (4) speedy decline in inflation, (5) the monetary authority switches its gear to an accommodative monetary policy stance, (6) increased foreign investors participation, (7) JPMorgan Chase & Co. readmits Nigeria into its local-currency emerging-market bond indexes, (8) political activities progress at a peaceful pace, (9) the FGN succeeds with its planned debt management strategy, and (10) the DMO, on behalf of the FGN, introduces additional alternative instruments. Scenario 2 Marginally Lower Yields: Average T-bills yield on the 91, 182, and 364-day bills drops to 11.68%, 13.02%, and 13.40% respectively while average bond yield on the 5, 10, and 20-year bonds closes at 15.64%, 15.70%, and 16.31% respectively. Drivers are (1) oil price and production closely trail 2017 average, (2) NGN exchange rate steadies at 2017 levels, (3) inflation rate sustains moderation, albeit at a slow pace, (4) economic recovery advances at a modest pace, (5) the MPC gradually eases interest rate, (6) the race for the 2019 general election advances without a major outbreak of crisis, and (7) FGN s debt management strategy grapples with CBN s frequent OMO auction Scenario 3 Higher Yields: Average T-bills yield on the 91, 182, and 364-day bills rises to 13.50%, 15.57%, and 15.92% respectively while average bond yield on the 5, 10, and 20-year bonds expands to 16.24%, 16.40%, and 18.16% respectively. Drivers are (1) oil price weakness resurfaces and deepens, (2) crude oil production drops significantly, mirroring 2016 levels, (3) the NGN exchange rate depreciates materially across the various markets, (4) inflation rate goes out of hand, (5) the apex bank commences aggressive OMO auction (including special auctions for DMBs) to stifle the financial system of naira liquidity, (6) the volume of treasury bills 6
7 offered at the CBN s bi-monthly NTB auction increases to both mop up liquidity and fund fiscal deficit, (7) foreign investor appetite weakens, (8) the political climate gets heated up as the race for the 2019 general election intensifies, (9) monetary policy tightens further, and (10) the FGN jettisons its planned debt management strategy amid increasing difficulty in securing external funding. SECTORS Consumer Goods An Impressive 2017 Sets Tone for 2018 Catalysts Improvement in consumer spending: From likely faster growth in economic activities, reduced inflationary pressure, election spending, and the proposed increase in national minimum wage, the outlook for consumption demand is positive in Low interest rate and deleveraged balance sheet: Both the debt repayments in 2017 and declining interest rates, suggest potentially lower finance charges in 2018, and consequently, a catalyst for earnings. Foreign exchange stability: By easing the pressure on margins and financing costs (USD components), including on consumer spending (through inflation), the stability of the naira followings months of intense fluctuation, is among the positively changed story of the Nigerian consumer goods companies. Impressive 2017 beams more light on consumer goods stocks in 2018: The strong earnings growth and share price gains recorded in 2018 should encourage investors to increase focus on consumer goods stocks which are historically regarded as defensive amidst a broadly bullish equities outlook. Risks External pressure: This relates to the strength of domestic macro recovery, naira exchange rate, and inflation. Nigeria s economy is forecast to recover only modestly in 2018 and its less-optimally diversified structure renders the recovery, including consumer spending, significantly vulnerable to unexpected shocks. Competition: Already, both the attractive profits reported by the established players and the improved access to the USD have encouraged a gradual return of the smaller players (mostly importers) to business. The risk of the established companies we cover losing market share to competition in 2018 is consequently high. Policy issues: This relates to the inflationary consequences of possible increase in energy price on consumption demand, especially vis-à-vis non-essentials. Valuation issues: In our view, the strong run of stocks prices in 2017 suggests limited upside potential for our coverage universe, even after revising our estimates upward following the July-September results and rolling forward valuation coming into
8 Cement 2018: Volume and Energy-led Growth Catalysts Supportive macroeconomic environment: From likely faster growth in economic activities and better government revenue prospect, the outlook for cement consumption, in private and public sectors, is positive in Energy diversification: We are convinced by the commitments of the sector operators to energy diversification, the benefits of which include positive transmission to margins (through lower production costs) and the reduction of energy supply risk. Foreign exchange stability: By easing the pressure on margins and financing costs (for LAFARGE), including on consumer spending (through inflation), the stability of the naira followings months of intense fluctuation, is positive for the Nigerian cement companies. Risks Price cuts: Cement companies are more likely to reduce prices in 2018 than increase them. We consider this a risk because of the impact higher prices have had on sector revenue over the last one year especially External issues: This relates to the strength of the domestic macro recovery, government revenue expectations, and naira exchange rate, amidst the risk of unexpected oil revenue shock. Drag from overseas operations: From intense competition to low prices, underperforming infrastructure sectors (e.g. South Africa), overcapacity, energy (e.g. Tanzania), and generally, economic growth challenges, the journey outside Nigeria should remain challenging for Nigerian cement companies. Agriculture Sustained Relevance on Direct Government Support Catalysts Supportive macroeconomic environment: While output growth will still lag pre-oil crash levels, our view is that, the level of activities, particularly across major non-oil subsectors, will be beneficial to oil palm producers even as manufacturers seek a volume-led growth. Energy diversification: We believe producers will continue to derive the gains of energy diversification, including positive transmission to margin (through lower production costs) and the reduction of energy supply risk. Expansion drive: While it is clear that most expansion plans, particularly those related to fresh cultivation, require medium-to-longer term duration for visible impact given the long gestation period of the cultivated crops, we look for 2018-specific plans impacting positively on the performance of agriculture producers. 8
9 Risks Policy reversal: Two major policies are worth mentioning here: (1) the CBN s exclusion of importers of palm oil related products from its official FX window and (2) the 35% import tariff imposed on CPO imported from non-ecowas countries. Unfavourable weather condition: Agricultural activities are subject to weather conditions. For oil palm producers, in particular, excessive rainfall and/or high temperature are inimical to production and yield. Security threat: OKOMUOIL and PRESCO s operations (including plantations) are largely domiciled in the Niger Delta region of the country, where issues of security apprehension are common. 9
Nigeria's economic recovery Defining the path for economic growth
www.pwc.com/ng Nigeria's economic recovery Defining the path for economic growth Nigeria's economy has turned a corner The oil price shock, which started in mid-2014, severely affected the Nigerian economy.
More informationMarket volatility to continue
How much more? Renewed speculation that financial institutions may report increased US subprime-related losses has sent equity markets tumbling. How much more bad news can investors expect going forward?
More informationNigeria: Economic Outlook Top 10 themes for 2018
PwC Nigeria Economics Top 10 themes for 2018 February 2018 Disclaimer This document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You
More informationDevelopments in inflation and its determinants
INFLATION REPORT February 2018 Summary Developments in inflation and its determinants The annual CPI inflation rate strengthened its upward trend in the course of 2017 Q4, standing at 3.32 percent in December,
More informationOutlook for Economic Activity and Prices
Not to be released until : p.m. Japan Standard Time on Saturday, October 31, 15. October 31, 15 Bank of Japan Outlook for Economic Activity and Prices October 15 (English translation prepared by the Bank's
More informationOutlook for Economic Activity and Prices (April 2014)
April 30, 2014 Bank of Japan Outlook for Economic Activity and Prices (April 2014) The Bank's View 1 Summary From fiscal 2014 through fiscal 2016, Japan's economy is likely to continue growing at a pace
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 30 March 2017 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since the previous
More informationEconomic ProjEctions for
Economic Projections for 2016-2018 ECONOMIC PROJECTIONS FOR 2016-2018 Outlook for the Maltese economy 1 Economic growth is expected to ease Following three years of strong expansion, the Bank s latest
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Gill Marcus, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 27 March 2014 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Gill Marcus, Governor of the South African Reserve Bank Since the previous
More informationOutlook for Economic Activity and Prices (July 2018)
Outlook for Economic Activity and Prices (July 2018) July 31, 2018 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue growing at a pace above its potential in fiscal 2018, mainly
More informationOutlook for Economic Activity and Prices (April 2018)
Outlook for Economic Activity and Prices (April 2018) The Bank's View 1 Summary April 27, 2018 Bank of Japan Japan's economy is likely to continue growing at a pace above its potential in fiscal 2018,
More informationCENTRAL BANK OF NIGERIA COMMUNIQUÉ NO 116 OF THE MONETARY POLICY COMMITTEE MEETING OF MONDAY 20 th AND TUESDAY 21 st NOVEMBER, 2017
CENTRAL BANK OF NIGERIA COMMUNIQUÉ NO 116 OF THE MONETARY POLICY COMMITTEE MEETING OF MONDAY 20 th AND TUESDAY 21 st NOVEMBER, 2017 Background The Monetary Policy Committee met on the 20 th and 21 st of
More informationMarket Insight Economy and Asset Classes December Oil Prices Downtrending: The Real Global Economic Stimulus
Market Insight Economy and Asset Classes December 2014 Oil Prices Downtrending: The Real Global Economic Stimulus 2 Equities Markets Feature In Citi analysts view, the expansion phase the US are enjoying
More informationECONOMIC RECOVERY AT CRUISE SPEED
EBF Economic Outlook Nr 43 May 2018 2018 SPRING OUTLOOK ON THE EURO AREA ECONOMIES IN 2018-2019 ECONOMIC RECOVERY AT CRUISE SPEED EDITORIAL TEAM: Francisco Saravia (author), Helge Pedersen - Chair of the
More informationMACROECONOMIC FORECAST
MACROECONOMIC FORECAST Autumn 2017 Ministry of Finance of the Republic of Bulgaria The Autumn macroeconomic forecast of the Ministry of Finance takes into account better performance of the Bulgarian economy
More informationThemes in bond investing
For professional investors only Not for public distribution Themes in bond investing June Asia 2011 2009 outlook Introduction Asian markets enjoyed a Goldilocks economic scenario in 2010 that helped them
More informationOutlook for Economic Activity and Prices (January 2018)
Outlook for Economic Activity and Prices (January 2018) January 23, 2018 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue expanding on the back of highly accommodative financial
More information4. Economic Outlook. ASSUMPTIONS AND SCENARIOS Condition of the International Economy World economic growth is predicted. to remain strong in 2007,
Monetary Policy Report - Quarter II-2007 4. Economic Outlook Overall, the accelerated pace of economic growth of 2007-2008 is predicted to carry forward, being accompanied by sustained macroeconomic stability.
More informationKoji Ishida: Japan s economy, price developments and monetary policy
Koji Ishida: Japan s economy, price developments and monetary policy Speech by Mr Koji Ishida, Member of the Policy Board of the Bank of Japan, at a meeting with business leaders, Fukuoka, 18 February
More informationProject LINK Meeting (September, 2017) Country Report for Nigeria
Project LINK Meeting (September, 2017) Country Report for Nigeria ECONOMIC OUTLOOK AND FORECAST (2017-2019) S. O. Olofin, O. E. Olubusoye, A. A. Salisu, K. O. Isah, T.F. Oloko and A.E. Ogbonna Centre for
More informationEdited Minutes of the Monetary Policy Committee Meeting (No. 2/2018) 28 March 2018, Bank of Thailand Publication Date: 11 April 2018
Edited Minutes of the Monetary Policy Committee Meeting (No. 2/2018) Members Present 28 March 2018, Bank of Thailand Publication Date: 11 April 2018 Veerathai Santiprabhob (Chairman), Mathee Supapongse
More informationOutlook for Economic Activity and Prices (October 2014)
October 31, 2014 Bank of Japan Outlook for Economic Activity and Prices (October 2014) The Bank's View 1 Summary From fiscal 2014 through fiscal 2016, Japan's economy is likely to continue growing at a
More informationErdem Başçi: Recent economic and financial developments in Turkey
Erdem Başçi: Recent economic and financial developments in Turkey Speech by Mr Erdem Başçi, Governor of the Central Bank of the Republic of Turkey, at the press conference for the presentation of the April
More informationMarch 2018 ECB staff macroeconomic projections for the euro area 1
March 2018 ECB staff macroeconomic projections for the euro area 1 The economic expansion in the euro area is projected to remain robust, with growth rates staying above potential. Real GDP growth is projected
More informationProjections for the Portuguese Economy:
Projections for the Portuguese Economy: 2018-2020 March 2018 BANCO DE PORTUGAL E U R O S Y S T E M BANCO DE EUROSYSTEM PORTUGAL Projections for the portuguese economy: 2018-20 Continued expansion of economic
More informationSOUTH ASIA. Chapter 2. Recent developments
SOUTH ASIA GLOBAL ECONOMIC PROSPECTS January 2014 Chapter 2 s GDP growth rose to an estimated 4.6 percent in 2013 from 4.2 percent in 2012, but was well below its average in the past decade, reflecting
More informationT R U S T F U N D P E N S I O N S P L C
MARKET AND ECONOMIC COMMENTARY NOVEMBER 31, 2014 T R U S T F U N D P E N S I O N S P L C Investment Research MACROS EQUITIES BONDS MONEY MARKET ALTERNATIVE INVESTMENTS Outline Key Macro Variables Growth
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy May 2008
Prudential International Investments Advisers, LLC. Global Investment Strategy May 2008 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationUnaudited 2016 First Quarter Results Presentation. April 2016
Unaudited 2016 First Quarter Results Presentation April 2016 Disclaimer and Note of Caution From time to time, the Bank makes written and/or oral forward-looking statements. These are included in this
More informationMeeting with Analysts
CNB s New Forecast (Inflation Report III/2018) Meeting with Analysts Karel Musil Prague, 3 August 2018 Outline 1. Assumptions of the forecast 2. The new macroeconomic forecast 3. Comparison with the previous
More informationEconomic Projections :3
Economic Projections 2018-2020 2018:3 Outlook for the Maltese economy Economic projections 2018-2020 The Central Bank s latest projections foresee economic growth over the coming three years to remain
More informationOutlook for Economic Activity and Prices (April 2010)
April 30, 2010 Bank of Japan Outlook for Economic Activity and Prices (April 2010) The Bank's View 1 The global economy has emerged from the sharp deterioration triggered by the financial crisis and has
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 18 January 2018 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank In recent weeks,
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 24 May 2018 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank In recent weeks,
More informationEconomic Projections :2
Economic Projections 2018-2020 2018:2 Outlook for the Maltese economy Economic projections 2018-2020 The Central Bank s latest economic projections foresee economic growth over the coming three years to
More informationEconomic projections
Economic projections 2017-2020 December 2017 Outlook for the Maltese economy Economic projections 2017-2020 The pace of economic activity in Malta has picked up in 2017. The Central Bank s latest economic
More informationEconomic Projections :1
Economic Projections 2017-2020 2018:1 Outlook for the Maltese economy Economic projections 2017-2020 The Central Bank s latest economic projections foresee economic growth over the coming three years to
More informationTrustfund Pensions Plc
Trustfund Pensions Plc H1 Performance Report Update on the Economies, Markets and Portfolio Performance... Global Economy...Nigeria...Trustfund Pensions Plc Investment Department June 2016 Global Economy
More informationINVESTMENT OUTLOOK. August 2017
INVESTMENT OUTLOOK August 2017 INVESTMENT OUTLOOK AUGUST 2017 MACRO-ECONOMICS AND CURRENCIES Developed and Emerging Markets A series of comments from major central banks during the month, reminded investors
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 17 January 2019 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since November
More informationOutlook for Economic Activity and Prices (January 2019)
January 23, 2019 Bank of Japan Outlook for Economic Activity and Prices (January 2019) The Bank's View 1 Summary Japan's economy is likely to continue on an expanding trend throughout the projection period
More informationOutlook for Economic Activity and Prices (October 2017)
Outlook for Economic Activity and Prices (October 2017) October 31, 2017 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue expanding on the back of highly accommodative financial
More informationMonetary Policy Report, June 2017
No. 32/2017 Monetary Policy Report, June 2017 Mr. Jaturong Jantarangs, Assistant Governor of the Bank of Thailand (BOT) and Secretary of the Monetary Policy Committee (MPC), released the June 2017 issue
More informationGrowth and Inflation Prospects and Monetary Policy
Growth and Inflation Prospects and Monetary Policy 1. Growth and Inflation Prospects and Monetary Policy The Thai economy expanded by slightly less than the previous projection due to weaker-than-anticipated
More informationReserve Bank of Malawi MONETARY POLICY STATEMENT # 6
Reserve Bank of Malawi MONETARY POLICY STATEMENT # 6 FEBRUARY 2018 APM LRR MPC OMO PR/MPR The Bank Definition and Acronyms Automatic Pricing Mechanism Liquidity Reserve Requirement Monetary Policy Committee
More informationFixed Income Monthly Report
Fixed Income Monthly Report Prepared by Lead Asset Management Limited 01/10/2018 CONTENTS GLOBAL DEVELOPMENTS Global Bond Yields Oil Prices MONTHLY ECONOMIC AND MARKET REVIEW June 2008 DOMESTIC UPDATES
More informationOVERVIEW. The EU recovery is firming. Table 1: Overview - the winter 2014 forecast Real GDP. Unemployment rate. Inflation. Winter 2014 Winter 2014
OVERVIEW The EU recovery is firming Europe's economic recovery, which began in the second quarter of 2013, is expected to continue spreading across countries and gaining strength while at the same time
More informationRBI Monetary Policy Update Status Quo on Rates
RBI Monetary Policy Update Status Quo on Rates After the cutting the rate by 25 bps in August policy, the RBI kept the key policy rate unchanged at 6% and maintained the neutral stance of monetary policy
More informationEconomic Projections For 2014 And 2015
Economic Projections For 2014 And 2015 Article published in the Quarterly Review 2014:3, pp. 77-81 7. ECONOMIC PROJECTIONS FOR 2014 AND 2015 Outlook for the Maltese economy 1 The Bank s latest macroeconomic
More informationFinland falling further behind euro area growth
BANK OF FINLAND FORECAST Finland falling further behind euro area growth 30 JUN 2015 2:00 PM BANK OF FINLAND BULLETIN 3/2015 ECONOMIC OUTLOOK Economic growth in Finland has been slow for a prolonged period,
More informationYukitoshi Funo: Economic activity and prices in Japan, and monetary policy
Yukitoshi Funo: Economic activity and prices in Japan, and monetary policy Speech by Mr Yukitoshi Funo, Member of the Policy Board of the Bank of Japan, at a meeting with business leaders, Hyogo, 23 March
More informationThe ECB Survey of Professional Forecasters. Fourth quarter of 2016
The ECB Survey of Professional Forecasters Fourth quarter of 16 October 16 Contents 1 Inflation expectations for 16-18 broadly unchanged 3 2 Longer-term inflation expectations unchanged at 1.8% 4 3 Real
More informationMonthly Outlook SEPTEMBER 2013
Monthly Outlook SEPTEMBER 2013 In August, the yield curve of US Treasuries continued to steepen as the likelihood of the US Fed tapering to start before year-end became stronger. Asian Local Currency fund
More informationCommentary March 2013
Market Price of Bond Market Price of Bond Commentary March 2013 Interest Rates: Creeping Higher Interest rates and bond yields are at multi-generational lows and are expected to trend higher over the next
More informationFixed Income Monthly Report
Fixed Income Monthly Report Prepared by Lead Asset Management Limited 01/03/2019 CONTENTS GLOBAL DEVELOPMENTS Global Bond Yields Oil Prices MONTHLY ECONOMIC AND MARKET REVIEW June 2008 DOMESTIC UPDATES
More informationMEDIUM-TERM FORECAST
MEDIUM-TERM FORECAST Q2 2010 Published by: Národná banka Slovenska Address: Národná banka Slovenska Imricha Karvaša 1 813 25 Bratislava Slovakia Contact: Monetary Policy Department +421 2 5787 2611 +421
More informationOECD Interim Economic Projections Real GDP 1 Percentage change September 2015 Interim Projections. Outlook
ass Interim Economic Outlook 16 September 2015 Puzzles and uncertainties Global growth prospects have weakened slightly and become less clear in recent months. World trade growth has stagnated and financial
More informationQuarterly Monetary Policy Report Press Conference. Brian Wynter. Governor
Quarterly Monetary Policy Report Press Conference Brian Wynter Governor Bank of Jamaica 19 November 2018 1 Good morning and welcome to the Quarterly Monetary Policy Report press conference. The Decision
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 23 November 2017 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since the
More informationSeptember 2017 ECB staff macroeconomic projections for the euro area 1
September 2017 ECB staff macroeconomic projections for the euro area 1 The economic expansion in the euro area is projected to continue over the projection horizon at growth rates well above potential.
More informationSummary of Opinions at the Monetary Policy Meeting 1,2 on March 14 and 15, 2019
Not to be released until 8:50 a.m. Japan Standard Time on Tuesday, March 26, 2019. March 26, 2019 Bank of Japan Summary of Opinions at the Monetary Policy Meeting 1,2 on March 14 and 15, 2019 I. Opinions
More informationINVESTMENT OUTLOOK JUNE 2018 MACRO-ECONOMICS. Developed and Emerging Markets
INVESTMENT OUTLOOK JUNE 2018 MACRO-ECONOMICS Developed and Emerging Markets Trade tariffs and protectionist themes have dominated global markets throughout the year and risks have further heightened through
More informationECONOMIC REVIEW MARKET REVIEW
ECONOMIC REVIEW After a challenging H1 2016, analysts were of the view that the U.S economy would pick up a faster momentum in H2 2016. Interestingly, in the third quarter, the Gross Domestic Product (GDP)
More informationThe ECB Survey of Professional Forecasters. First quarter of 2017
The ECB Survey of Professional Forecasters First quarter of 217 January 217 Contents 1 Near-term inflation expectations a little higher, due to oil price rises 3 2 Longer-term inflation expectations unchanged
More informationSTATE OF THE NIGERIAN ECONOMY
STATE OF THE NIGERIAN ECONOMY By Dr Suleyman Abdu Ndanusa (OON) 1 13 th June 2016 Outline Introduction Snapshot of selected economic statistics Baseline statistics {Economy as at May, 2015} The Nigerian
More informationDECEMBER 2015 EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA 1
DECEMBER 2015 EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA 1 1. EURO AREA OUTLOOK: OVERVIEW AND KEY FEATURES The economic recovery in the euro area is expected to continue. Real GDP is
More informationEMERGING MARKETS: POSITIONING FOR NORMAL
FOR PROFESSIONAL CLIENTS ONLY. NOT TO BE REPRODUCED WITHOUT PRIOR WRITTEN APPROVAL. PLEASE REFER TO ALL RISK DISCLOSURES AT THE BACK OF THIS DOCUMENT. EMERGING MARKETS: POSITIONING FOR NORMAL INVESTING
More informationThe ECB Survey of Professional Forecasters (SPF) First quarter of 2016
The ECB Survey of Professional Forecasters (SPF) First quarter of 16 January 16 Content 1 Inflation expectations maintain upward profile but have been revised down for 16 and 17 3 2 Longer-term inflation
More informationRepublic of Korea Contributions to growth (demand) Quarterly GDP growth
Republic of Korea The export sector was surprisingly strong in, but domestic demand wilted, resulting in economic growth below potential. Subpar growth is expected again this year, with the uncertain global
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT 24 January 2017 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since the previous meeting of
More informationOutlook for Economic Activity and Prices (April 2017) Summary
April 27, 2017 Bank of Japan The Bank's View 1 Outlook for Economic Activity and Prices (April 2017) Summary Japan's economy is likely to continue expanding and maintain growth at a pace above its potential,
More informationNovember minutes: key signaling language
Trend Macrolytics, LLC Donald Luskin, Chief Investment Officer Thomas Demas, Managing Director Michael Warren, Energy Strategist Data Insights: FOMC Minutes Thursday, November 29, 2018 November minutes:
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy October 2009
Prudential International Investments Advisers, LLC. Global Investment Strategy October 2009 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationQuarterly Currency Outlook
Mature Economies Quarterly Currency Outlook MarketQuant Research Writing completed on July 12, 2017 Content 1. Key elements of background for mature market currencies... 4 2. Detailed Currency Outlook...
More informationNo. 43/2018 Monetary Policy Report, June 2018 Mr. Jaturong Jantarangs, Assistant Governor of the Bank of Thailand (BOT) and Secretary of the Monetary
No. 43/2018 Monetary Policy Report, June 2018 Mr. Jaturong Jantarangs, Assistant Governor of the Bank of Thailand (BOT) and Secretary of the Monetary Policy Committee (MPC), released the June 2018 issue
More informationRBI Q1 FY11 Monetary Policy Review
RBI Q1 FY11 Monetary Policy Review The Policy Measures In Brief In its First Quarter Review of the Annual Monetary Policy for 2010-11, the Reserve Bank of India increased its policy rates with immediate
More informationOutlook for Economic Activity and Prices
Not to be released until : p.m. Japan Standard Time on Thursday, May 1, 8. May 1, 8 Bank of Japan Outlook for Economic Activity and Prices April 8 (English translation prepared by the Bank's staff based
More informationNew Zealand Economic Outlook. Miles Workman June 2017
New Zealand Economic Outlook Miles Workman June 17 1 Economic Outlook Overview The New Zealand economy is forecast to expand at a solid pace over the next five years With real GDP growth around 3% in 17:
More informationEUROPEAN COMMISSION DIRECTORATE-GENERAL FOR ECONOMIC AND FINANCIAL AFFAIRS. September 2006 Interim forecast
EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR ECONOMIC AND FINANCIAL AFFAIRS September 26 Interim forecast Press conference of 6 September 26 European economic growth speeding up, boosted by buoyant domestic
More informationEXECUTIVE SUMMARY. Global Economic Environment
Global Economic Environment The global expansion is losing speed in the face of a major financial crisis (Chapter 1). The slowdown has been greatest in the advanced economies, particularly in the United
More informationJUNE 2015 EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA 1
JUNE 2015 EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA 1 1. EURO AREA OUTLOOK: OVERVIEW AND KEY FEATURES The June projections confirm the outlook for a recovery in the euro area. According
More informationSME Monitor Q aldermore.co.uk
SME Monitor Q1 2014 aldermore.co.uk aldermore.co.uk Contents Executive summary UK economic overview SME inflation index one year review SME cost inflation trends SME business confidence SME credit conditions
More informationMacroeconomic and financial market developments. March 2014
Macroeconomic and financial market developments March 2014 Background material to the abridged minutes of the Monetary Council meeting 25 March 2014 Article 3 (1) of the MNB Act (Act CXXXIX of 2013 on
More informationGlobal Macroeconomic Monthly Review
Global Macroeconomic Monthly Review August 14 th, 2018 Arie Tal, Research Economist Capital Markets Division, Economics Department 1 Please see disclaimer on the last page of this report Key Issues Global
More informationDiffusion indices of forecast risks in Summary of Economic Projections From September 2016 FOMC to June 2018 FOMC. Mar '17 FOMC
Trend Macrolytics, LLC Donald Luskin, Chief Investment Officer
More informationDecember 2018 Eurosystem staff macroeconomic projections for the euro area 1
December 2018 Eurosystem staff macroeconomic projections for the euro area 1 Real GDP growth weakened unexpectedly in the third quarter of 2018, partly reflecting temporary production bottlenecks experienced
More informationMID-TERM REVIEW OF THE 2013 MONETARY POLICY STATEMENT
MID-TERM REVIEW OF THE MONETARY POLICY STATEMENT. INTRODUCTION. The Mid-Term Review (MTR) of the Monetary Policy Statement (MPS) evaluates progress in achieving the percent medium-term inflation objective.
More informationMinutes of the Monetary Policy Council decision-making meeting held on 2 September 2015
Minutes of the Monetary Policy Council decision-making meeting held on 2 September 2015 Members of the Monetary Policy Council discussed monetary policy against the background of the current and expected
More informationHaruhiko Kuroda: Japan s economy and monetary policy
Haruhiko Kuroda: Japan s economy and monetary policy Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at a meeting with business leaders, Osaka, 28 September 2015. Introduction * * * It is
More informationDecember 2017 Eurosystem staff macroeconomic projections for the euro area 1
December 2017 Eurosystem staff macroeconomic projections for the euro area 1 The economic expansion in the euro area is projected to remain robust, with growth stronger than previously expected and significantly
More informationMONETARY POLICY REPORT RESERVE BANK OF MALAWI
RESERVE BANK OF MALAWI March 2018 RESERVE BANK OF MALAWI Monetary Policy Report March 2018 The Reserve Bank of Malawi has constitutional mandate to maintain price stability in Malawi. In this regard, the
More informationRecent developments in the Global and South African economies
Day Month Year Recent developments in the Global and South African economies Presented by: Nico Kelder Senior Economist Industrial Development Corporation of South Africa 2010 Growth, Development and Investment
More informationEmerging Markets Debt: Outlook for the Asset Class
Emerging Markets Debt: Outlook for the Asset Class By Steffen Reichold Emerging Markets Economist May 2, 211 Emerging market debt has been one of the best performing asset classes in recent years due to
More informationGrowth might show positive surprise
Baltic Outlook Growth might show positive surprise Violeta Klyvienė Senior Baltic Analyst +370 5 2156992, +370 611 24354 April 2011 vkly@danskebank.dk Important disclosures and certifications are contained
More informationDecember Nigeria's operating landscape
Nigeria's operating landscape Caveat This document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information
More informationAudited 2015 Full Year Result Presentation. Phillips Oduoza, Group Managing Director/CEO
Audited 2015 Full Year Result Presentation Phillips Oduoza, Group Managing Director/CEO Good day everyone and thanks for joining this call. The year 2015 was characterised by macroeconomic uncertainties,
More informationRavi Menon: Economic and financial developments in Singapore
Ravi Menon: Economic and financial developments in Singapore Opening remarks by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), at the MAS Annual Report 2010/11 Press Conference,
More informationBOFIT Forecast for Russia
BOFIT Forecast for Russia 27 March 2018 BOFIT Russia Team BOFIT Forecast for Russia 2018 2020 Bank of Finland BOFIT Institute for Economies in Transition Bank of Finland BOFIT Institute for Economies in
More informationInterbank and Parallel M
ECONOMIC REVIEW Interbank and Parallel M MARKET REVIEW According to the International Monetary Fund ( IMF ), the global economy is expected to grow by 3.7 and 3.8 in 2017 and 2018 respectively. The increased
More informationEdited Minutes of the Monetary Policy Committee Meeting (No. 8/2018) 19 December 2018, Bank of Thailand Publication Date: 2 January 2019
Edited Minutes of the Monetary Policy Committee Meeting (No. 8/2018) 19 December 2018, Bank of Thailand Publication Date: 2 January 2019 Members Present Veerathai Santiprabhob (Chairman), Mathee Supapongse
More information