Beyond Nigeria’s GDP numbers: Is it icing on the cake or the cake itself?

According to the National Bureau of Statistics (NBS), Nigeria’s Gross Domestic Product (GDP) rose by 3.54% y/y in real terms in the second quarter of 2022 (Q2-2022). This shows that the economy expanded in Q2-2022 by 0.44% when compared to the 3.11% y/y recorded in the preceding quarter (Q1-2022) as the non-oil sector remains the key driver of growth. Similarly, this outturn represents an economic expansion on a year-on-year basis, albeit at a slower rate when compared to Q1-2021 (5.01% y/y) as the growth rate declined by 1.47%.

Nigeria’s inflation rate hits 19.64% in July 2022, the highest in 17 years

An examination of the NBS inflation data shows that this is the highest since September 2005 when the inflation rate hit 24.32% year-on-year. On a month-on-month basis, the headline inflation rose by 1.82% in July 2022. This is the same as the rate recorded in June 2022 (1.82% m/m). In our view, higher energy prices and continued depreciation of the local currency against the US Dollar were the key drivers behind this uptick.

Taming Market Power Could (also) help Monetary Policy

Some central banks are currently debating whether to tighten monetary policy to fight inflationary pressures, after having eased decisively in response to the COVID-19 shock. In making such decisions, central bankers have to consider how much businesses and consumers will respond. The structure of the financial system and the future expectations of consumers and businesses are key drivers of how effective monetary policy actions will be. Yet there’s another, overlooked, driver: corporate market power.

How “Chaos” In the Shipping Industry Is Choking The Economy

On both land and at sea, the entire supply chain is struggling to keep up. In the Pacific Northwest, it’s become such a clusterfest that the U.S. Coast Guard has been redirecting boats to anchor off the coast of Whidbey Island and other places they typically don’t park. Ship crews are having to wait days, even weeks, for the chance to dock at the ports and offload their precious goods.

Why Soaring Stocks Could Be Bad News For The Economy

While it’s had some ups and downs, the stock market has soared to historic heights in recent years. For many, that’s great news: it’s a sign that the economy and their retirement accounts are doing really well. For Jan Eeckhout, however, the booming stock market is a sign that there’s something deeply wrong with the economy.

Sure, the economist says, he has a retirement account with stocks, and he personally benefits from the ongoing bonanza on stock exchanges. But the rocket ride of the stock market is powered by the exploding profits of increasingly powerful corporations. Their increasingly ridiculous profits, he says, are eating the income of the vast bulk of workers and hurting the overall economy. That notion is the central thesis of his forthcoming book, The Profit Paradox: How Thriving Firms Threaten the Future of Work.

104 days of Bidenonomics

President Biden has now been in office for 100 days. Okay, technically 104 days. In that time, presidential tweets have gotten way more boring, but the federal government’s plans to intervene in the economy have gotten way more interesting.

In his joint address to Congress last week, Biden called for a multitrillion-dollar agenda that could fundamentally transform the economy. And it now seems like the man conservatives called “Sleepy Joe” has been pounding Red Bulls and is ready to tax and spend like no president in generations.

Here’s a brief overview of some of President Biden’s biggest economic initiatives.

The Global Economic Reset- Promoting a More Inclusive Recovery

By Kristalina Georgieva The COVID-19 crisis is inflicting the most pain on those who are already most vulnerable. This calamity could lead to a significant rise in income inequality. And it could jeopardize development gains, from educational attainment to poverty reduction. New estimates suggest that up to 100 million people worldwide could be pushed into extreme poverty, […]

The Biggest Gainers in the Coronavirus Economy

As a result of the outbreak of COVID-19, countries have restricted the movement of its citizens. In California, the residents have been advised to stay at home and only can go out when it is absolutely necessary. Italy and France have also ordered a total lock down while different countries such as the United States, […]

The Much Damages Coronavirus has Done to the Global Stock Market

In the global stock market, the impact has been overwhelming as investors rally around to look for safe havens. The DOW-Jones, S&P 500 and NASDAQ have all entered into the bear market as a result of COVID-19. According to the rules of the New York Stock Exchange (NYSE), trading on the floor of the exchange […]

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