Nigerian Economy Macroeconomic Analysis - 5021 Words

sisNigeria – Country Report 2012 61310039 Indian School of Business 7/6/2012 Contents Economic Overview 3 Gross Domestic Product (GDP) 3 GDP Composition 4 Inflation 4 Shadow Economy 5 Trade Overview 5 Foreign Debt 7 Labor Market amp; Human Capital 7 Population and Income Inequality 8 Unemployment 9 Currency 10 Money Supply and Monetary Control 10 Fiscal policy 12 Exchange rates 12 Interest Rates 13 Foreign Direct Investment 14 Globalization and Comparative Advantage 14 Conclusion 15 References 16 Economic Overview Nigerias economy is estimated to be worth about $262bn, making it one of the largest economies in Africa. The estimates and analysis of various indicators is discussed in the†¦show more content†¦It is expected moderate only in 2014 as a result of moderation in commodity prices. The April 2012 inflation data as obtained shows a Month-on-month inflation to be (0.13%), Year-on-Year (12.9%), 12-Month Avg. Chg. (11.1%). The inflation rate is exceedingly high and is detrimental towards investment in the country. The Consumer Price Index and Nigerian Inflation rate is shown below. Source: Economic Intelligence Unit Shadow Economy The untaxed and unregulated revenues - by some estimates - account for between 40% and 45% of gross domestic product (GDP). Nigerians make most of their living, as street hawkers, minibus drivers, money changers or market traders. In spite of the abysmal performance of the country’s economy, poor infrastructure and unfriendly business environment Nigeria has huge potentials to be tapped because of its huge deposits of Natural Resources and population that can be gainfully employed. The black economy accounts for a large part of the Nigerian economy. Trade Overview Nigeria has considerable natural resources such as oils, and the revenue from oil exports forms a major chunk of the Government fund. Nigeria has recently started a sovereign wealth fund and the excess returns from oil exports viz-a-viz projected returns is directed to this sovereign fund. This fund is building up at a slower pace as the revenue is being directed towards meeting government excess spending to meet the countries capitalShow MoreRelatedNigerian Economy: Macroeconomic Analysis5008 Words   |  21 Pages Inflation 4 Shadow Economy 5 Trade Overview 5 Foreign Debt 7 Labor Market amp; Human Capital 7 Population and Income Inequality 8 Unemployment 9 Currency 10 Money Supply and Monetary Control 10 Fiscal policy 12 Exchange rates 12 Interest Rates 13 Foreign Direct Investment 14 Globalization and Comparative Advantage 14 Conclusion 15 References 16 Economic Overview Nigerias economy is estimated to be worth about $262bn, making it one of the largest economies in Africa. The estimatesRead MoreCurrency Devaluation And Fuel Subsidy Removal1185 Words   |  5 PagesCurrency devaluation and fuel subsidy removal are policies that are phenomena to the Nigerian economic environment. This research study identifies that the implementation of the policies has further caused more challenges in the pursuit for economic development than remedy to alleviate the crisis. From the research questions of this research study, was the questionnaire developed aimed at prying into currency devaluation and fuel subsidy removal for Nigeria’s economic development. 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