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CBN Forecasts -1.03 Percent GDP Contraction in Q2, 2020

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The Central Bank of Nigeria (CBN) has forecast a contraction of -1.03 percent for the Nigerian economy in the second quarter (Q2) of 2020.

The Monetary Policy Committee (MPC) of the CBN noted that the forecast was based on the back of the continued adverse impact of the coronavirus pandemic on the economy.

The MPC yesterday, kept the benchmark interest rate unchanged at 12.5 percent in consideration of rising inflation rate and weak growth.

The Committee expressed concern over the persistent, albeit marginal, uptick in inflation for the tenth consecutive month, as headline year-on-year inflation rose to 12.56 per cent in June 2020 from 12.40 per cent in May 2020.

It reiterated the need for a robust fiscal policy strategy to attract private investment and capital, to finance the huge infrastructure deficit in Nigeria, and strengthen the existing initiatives by the federal government and the CBN in this direction.

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