News Economy

News Economy (94)

Namibia’s annual inflation rate slowed to 3.7 percent in August 2019 from 4.4 percent registered during the same period last year, according to statistics released on Thursday.
 
The decrease resulted mainly from a downturn registered in transport, housing, water, electricity, gas, and other fuels, health, alcoholic beverages and tobacco, miscellaneous goods and services and Hotels, cafes and restaurants, according to Namibia Statistics Agency (NSA).
 
The 12 months average annual and average monthly inflation rates from September 2018 to August 2019 stood at 4.5 percent and 0.3 percent. Corresponding rates recorded during the same period a year earlier stood at 4.3 percent and 0.4 percent respectively, it said.
 
The average annual and average monthly inflation rates for the period January 2019 to August 2019 were estimated at 4.2 percent and 0.3 percent respectively, according to Statistician-General, Alex Shimuafeni.

Nigeria’s Gross Domestic Product (GDP) declined by 0.16 per cent in the second quarter of 2019, the National Bureau of Statistics (NBS) said on Tuesday.


The NBS also revealed that the GDP grew by 1.94 per cent in real terms within the same period.

According to the report, if compared to the second quarter of 2018, which recorded a growth of 1.50 per cent, the growth observed in Q2 2019 indicates an increase of 0.44 per cent.

However, when compared to 2.10 per cent recorded in the first quarter of 2019, the Q2 2019 real growth rate indicates a decline of 0.16 per cent.

“During the quarter, aggregate GDP stood at N34,944,151.61 million in nominal terms, an increase of 13.83% over the performance in the second quarter of 2018 and 9.8% over the preceding quarter,” the report noted.

The NBS said that the performance observed in Q2 2019 follows an equally strong first-quarter performance, and was likely aided by stability in oil output as well as the successful political transition.

Overall, a total of 15 activities grew faster in Q2 2019 relative to last year, while 13 activities had higher growth rates relative to the preceding quarter.

On a half-year basis, real growth in the first half of 2019 stood at 2.02 per cent, higher than in 2018 which was 1.69 per cent.

Further analysis on the quarter on quarter shows that the real GDP increased by 2.85 per cent compared to a decline of –13.69 per cent in the preceding period.

Kenya has joined the league of crude oil exporters in Africa. President Uhuru Kenyatta flagged off the maiden oil shipment today at a ceremony in the port of Mombasa, with a warning against corruption that may deny people the opportunity to benefit from the resource.
 
The crude oil will be shipped by Chinese state-owned firm ChemChina which won the tender to buy the maiden Kenyan oil at a premium early this month, the Standard of Kenya reported.
 
The Government on August 1 announced that the oil produced in Turkana and stacked at the Kenya Petroleum Refineries Ltd’s (KPRL) storage facilities in Mombasa would be sold at Sh1.2 billion ($12 million).
 
Uhuru said the country with its partners will continue to pursue natural resources but without compromising the future generation.
 
He said more resources would be channelled into upgrading infrastructure that would ease transport of oil from the fields to the port.
 
“The government will ensure that the local communities benefit from the oil and that the fruits of the resource are also shared in an equitable and sustainable manner.
 
“I urge all those in charge to avoid any misuse of the resource that would deny others from its benefit,” he added.
 
Petroleum Cabinet Secretary John Munyes said plans are underway to have a pipeline between Turkana and Lamu Port to ease transportation of the oil.
 
“The 2020 plan for a pipeline connecting Lokichar-Lamu are on track, we need more commitments on land and water to enable us to move faster with everything,” he added.
 
Representatives from Tullow Oil, Total, and governors from Lamu, Mombasa, West Pokot, Kwale, Taita Taveta and Turkana Deputy Governor attended the Monday event.
 
The export of the Crude Oil will start with a shipment of 200,000 barrels marking Kenya’s entry into the league of oil-exporting countries, the Standard said.
 
Tullow estimates that Kenya’s onshore fields in Turkana hold 560 million barrels of oil and expects them to produce up to 100,000 barrels per day from 2022.

Japan said on Friday its economy had slowed in the April-to-June quarter amid escalating trade tensions between China and the United States.

The economy expanded at an annualized rate of 1.8 per cent for the third straight quarter of growth, slowing from the 2.8-per-cent expansion in the first three-month period, the Cabinet Office said in a statement.

The reading beat the 0.4-per-cent growth forecast by analysts polled by the Nikkei Business Daily.

The country’s 10-day holiday during the imperial succession in May helped boost consumption, analysts said.

Private consumption rose 0.6 per cent quarter-on-quarter, compared with a 0.1-per-cent increase in the January-to-March period,

Corporate investment climbed 1.5 per cent, following a 0.4-per-cent rise in the previous quarter.

The office also reported exports edged down 0.1 per cent in the April-to-June period, compared with a 2-per-cent contraction in the first quarter of this year.

Imports grew 1.6 per cent in the second quarter after shrinking 4.3 per cent in the previous period.

The consumer price index, (CPI) which measures inflation increased by 11.22 percent (year-on-year) in June 2019.

This is 0.18 percent points lower than the rate recorded in May 2019 (11.40) percent.

This was contained in a report released on Monday by the National Bureau of Statistics.

The Federal Executive Council (FEC) on Monday approved the rate of 0.2 per cent as the new import levy of Cost, Insurance and Freight (CIF) on goods coming into Nigeria.

The Minister of Finance, Mrs Zainab Ahmed, disclosed this while addressing the State House correspondents after the FEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa.

She said, however, there were exemptions to the new levy.

“Council approval a rate of 0.2 per cent as the new import levy of CIF that will be charged on imports coming to Nigeria but with some exceptions.

“The exceptions include goods originating from outside the territory of member countries that are coming into the country for consumption.

“It also includes goods that are coming for aid and also it includes goods that are originating from non-member countries but are imported through specific financing agreement that ask for such kind of exemptions.

“It also exempts goods that have been ordered and are under importation process before the scheme is announced into effect.

According to her, the purpose of the new levy is to enable African Union (AU) members pay on a sustainable basis, their subscription to the AU.

Ahmed said that Nigeria knowing that what would accrue from the new levy would be more than what was required as subscription to the AU, that the balance would be put in a special account.

She said that the special account would be used to finance subscriptions in multilateral organisations such as the World Bank, African Development Bank (AfDB), the Islamic Development Bank, and institutions like that.

The minister said that if there was any excess left from that revenue pool, it would be used to finance the budget.

She said the second approval was for the setting up of the Steering Committee to be chaired by the vice president for the design and implementation of a National Single Window.

“The National Single Window is a web portal that will be able to integrate all the government agencies that are implementers in the port system or trading in the port system.

“The trading platform will enable better efficiency of port operations; also, we are projecting that it will significantly increase government revenue.

“The third approval is for the extension of the Central Bank of Nigeria (CBN) intervention that will be used to continue to support the power sector particularly, the generation arm of the power sector.

“This is based on a commitment that we signed into as a country where we gave seven guarantees to the Generating Companies (GenCos) to bridge any gap that they may have after the Nigerian Bulk Electricity Trading (NBET) Plc has settled them,” she said.

On his part, the Minister of Budget and National Planning, Sen. Udo Udoma, said he briefed the FEC on the first quarter of Gross Domestic Product (GDP) performance numbers released by the National Bureau of Statistics (NBS), a parastatal under his ministry.

He said that the GDP indicated continuing economic growth.

According to him, the economy recorded a real GDP growth of 2.01 per cent in the first quarter of 2019.

Udoma said that the growth reflected the strongest first quarter performance in GDP since 2015—a development which he said pleased the council.

“FEC is most encouraged that the economy continues to be driven by the non oil sector which affects most of our population.

“Also, Agriculture grew by 3.17 per cent and this represents the strongest growth in agriculture since the first quarter of 2017.

“FEC is also pleased to note that are improvements in other economic indicators such as the inflation rate which tend to be high during the election period but it has been stable.

“Our trade balance has also remained healthy during the period while our exchange rate to the dollar has also been stable notwithstanding the elections, there has been stability,” he said

The minister said that the council believed that the dividend arising from the peaceful elections and the re-election of President Muhammadu Buhari would lead to a further boost in economic growth.

He said that the country would expect faster growth rate as the incoming cabinet would continue to intensify work on the implementation of the Economic Recovery and Growth Plan.

Nigeria Customs Service (NCS) has announced that it generated N311.2 billion revenue in the first quarter of 2019.

This was contained in a document released in Abuja by the office of the Public Relations Officer of the service, Joseph Attah, showing the revenue generated between January and March.

A revenue target of N887 billion was set for NCS in 2019 by the federal government.

However, the Comptroller-General of Customs, Hameed Ali, had promised that the figure would be surpassed as the management had earlier set a higher target for the organisation.

The NCS generated about N116.5 billion in January, N84.9 billion in February, and N109.8 billion in March.

It showed that the revenue, which is from; import duty, levy, exercise duty and other fees, was gotten from the 29 various commands of the service across the country.

Apapa Customs’ command has the highest revenue generated followed by Tincan.

Ogun State Command of NCS had, earlier in the month, announced that it generated N3,258,628,190 revenue in the first quarter of 2019.

The command’s Area Comptroller, Michael Agbara said the command intercepted 1.8 tons of cannabis sativa (Indian hemp), 12,720 bags of foreign rice, 83 units of “tokunbo” vehicles, 446 kegs of vegetable oil, 4 units of motorcycle and 778 pairs, three jumbo and six sacks of used foot wears, within the period.

Former President Jimmy Carter told a church congregation this weekend that he had spoken with President Donald Trump about China on Saturday, and said the commander in chief was worried that Beijing had outpaced its global rivals.

According to Emma Hurt, a reporter for NPR affiliate WABE, Carter spoke of the call during his regular Sunday School lesson at Maranatha Baptist Church in his hometown of Plains, Georgia.

Carter, 94, said Trump was worried that “China is getting ahead of us,” and suggested the president was right to be concerned.

He told the congregation that Trump feared China’s growing economic strength. Economic modeling indicated that China would overtake the U.S. as the world’s strongest economy by 2030, and many experts have said that we were already living in what has been dubbed the “Chinese Century.”

Carter said he did not “really fear that time, but it bothers President Trump and I don’t know why. I’m not criticizing him this morning,” he added, to laughs from fellow churchgoers.

Carter—who normalized diplomatic relations between Washington and Beijing in 1979—suggested that China’s breakneck growth had been facilitated by sensible investment and buoyed by peace.

“Since 1979, do you know how many times China has been at war with anybody?” Carter asked. “None. And we have stayed at war.” The U.S., he noted, has only enjoyed 16 years of peace in its 242-year history, making the country “the most warlike nation in the history of the world,” Carter said. This is, he said, because of America’s tendency to force other nations to “adopt our American principles.”

In China, meanwhile, the economic benefits of peace were clear to the eye. “How many miles of high-speed railroad do we have in this country?” he asked. While China has some 18,000 miles of high-speed rail, the U.S. has “wasted, I think, $3 trillion” on military spending. “It’s more than you can imagine. China has not wasted a single penny on war, and that’s why they’re ahead of us. In almost every way.”

“And I think the difference is if you take $3 trillion and put it in American infrastructure you’d probably have $2 trillion leftover. We’d have high-speed railroad. We’d have bridges that aren’t collapsing, we’d have roads that are maintained properly. Our education system would be as good as that of say South Korea or Hong Kong,” Carter told the congregation.

Before he left the pulpit, Carter noted, “I wasn’t comparing my country adversely to China. I was just pointing that out because I happened to get a phone call last night.”

The Trump administration remains locked in a costly trade war with China, though Treasury Secretary Steve Mnuchin said Saturday the end could be in sight. “I think we’re hopeful that we’re getting close to the final round of concluding issues,” Mnuchin told reporters, according to The Wall Street Journal.

Meanwhile, military tensions remain over Chinese territorial claims in the South China Sea and its continued insistence that the independent island nation of Taiwan will eventually fall back under Beijing’s control.

Nigeria’s inflation rate has dropped to 11.25 percent year on year for March 2019, the National Bureau of Statistics, NBS, said on Tuesday.
 
According to the report released by the bureau, the inflation rate for the month of March is 0.06 percent lower than the 11.31 per cent recorded in February 2019.
 

The report further states that on a month-on-month basis, the index increased by 0.79 per cent in March. The report also revealed that this was 0.06 percentage points higher than the 0.73 per cent recorded in February.

For urban inflation, the rate increased by 11.54 per cent year-on-year in March 2019 from 11.59 per cent recorded in February, while the rural inflation rate increased by 10.99 per cent in March from 11.05 per cent in February.

The NBS however said the urban index on a month-on-month basis, rose by 0.81 per cent in March, up by 0.05 percentage points from 0.76 per cent recorded in February, while the rural index rose by 0.77 per cent in March, up by 0.06 percentage points from the 0.71 per cent recorded in February.

The NBS further revealed food index rose by 13.45 per cent in March compared to 13.47 per cent in February.

According to the report, the rise in the food index was caused by increases in prices of bread and cereals, meat, fish, potatoes, yam and other tubers, oils and fats, and soft drinks, vegetables, and fruits.

The report lists Kebbi, Zamfara, Taraba, Kwara, Cross River and Delta as the states with the highest increase in prices.

Inflation was however highest on a month on month basis in Kogi (1.91 per cent), Plateau (1.77 per cent), and Lagos (1.63 per cent).

Nasarawa (0.26 per cent), Kwara (0.16 per cent) and Enugu (0.13 per cent), the report said recorded the slowest rise.

The Central Bank of Nigeria (CBN) has disclosed that the Nigerian economy recorded about $5 billion foreign investment inflows post-general elections in February/March 2019.

The governor of the apex bank, Mr. Godwin Emefiele, revealed this on Friday in Washington DC, USA.

The CBN Governor added that the apex bank was committed to ensuring that the Nigerian financial system was not only sound, but able to support the real sector in boosting Nigeria’s growth and development, while continuing to attract foreign investors.

He said: “Although monumental feats have been achieved by the CBN in various aspects of development finance, foreign exchange management, financial inclusion and payments system in the past five years, challenges remain.”

He added, “Since its establishment, the CBN has recorded about $35 billion in autonomous forex inflows through this Window alone. As a result, exchange rate pressures eased considerably across all markets as the rates converged to about N360/$ and the distortive premium almost eliminated.

  1. Opinions and Analysis

Calender

« September 2019 »
Mon Tue Wed Thu Fri Sat Sun
            1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30