Nigeria is set to see a rebound in growth in the second and third quarter of 2021, according to the World Bank in a new Nigeria Development Update report released yesterday seen by MoneyCentral.
The World Bank report notes that:
“Nigeria’s economic temperature (NET) is getting warmer, hinting at a growth rebound for the second and third quarter of 2021.”
The NET Index is produced by the World Bank and measures the “temperature” of the Nigerian economy based on a set of 14 high-frequency indicators.
These indicators include headline inflation, oil prices, manufacturing PMI, Treasury Bill rates, currency in circulation, exchange rate indicators (e.g., premium between the parallel vs. NAFEX rates), external reserves, and credit to the private sector.
The color coding is based on the deviations of each indicator relative to a 5-year average. RED indicates potential stronger growth (the economy is heating up). BLUE indicates the opposite (the economy is cooling).
Quarterly GDP growth in Nigeria has resumed but remains below the levels of 2017-2019, with GDP rising by 0.51 percent in Q1, 2021.
More details of the report later.