Global Economy in 2016
Global economic growth appeared flexible in 2016 due to numerous reasons which vary by region. Generally, the key events include structural adjustments in many countries, efforts to reduce overcapacity, geopolitical events such as Brexit, a coup d’état in Turkey and the ongoing civil war in Syria, heightened uncertainty related to the U.S. presidential election, as well as potential policy changes in the U.S. and a number of other major economies. Comprehensive data showed that the global economy grew by 2.6% year-on-year in Q3 (at current exchange rates) and expected to grow by 2.5% overall in 2016.
Nigeria Economy 2016
The year 2016 commenced with heightened positive expectations, especially due to the federal government budget for the year. The budget was based on a benchmark oil price of $38/barrel, even though oil price took off low, the expectations of price appreciation during the year was on the high side. In our own view, the target was not in any way unreasonable. Nevertheless, it will be recalled that the budget was also premised on oil production of 2.2 million barrels/day and an exchange rate of N197/USD. And even then the budget deficit was N2.2 trillion ($11 billion).