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British media: South Africa and Nigeria are out of recession Reference message 2

 Published:2017-11-17 2:19:52    Source:    Views:1336

 British media: South Africa and Nigeria are out of recession

Reference message 2017-09-07 10:55
British media said that in the second quarter of this year, Africa's two largest economies out of recession: Nigeria difficult to get rid of the first economic recession in 25 years, South Africa despite the political turmoil, but the economy resumed growth.
According to the British Financial Times website reported on September 5th, South Africa's economy shrank by 0.7% at the beginning of the year, but rebounded in the two quarter, an increase of 1.1%.
Nigeria is the largest crude oil producer in africa. After the recovery of oil production, Nigeria's economy grew by 0.55% year on year, slower than most economists predicted. Nigeria's economy shrank by 1.6% in 2016.
In the two African countries, the political crisis has suppressed economic activity and weakened interest in reform. The bad performance of the two countries has shocked investors' enthusiasm for the continent, making the rise of Africa difficult to believe, despite the continued growth of other economies, including Cote d'Ivoire, Tanzania and Ethiopia.
Standard Chartered Bank Africa chief economist Razia Khan said, there is little sign of "the next few quarters, the South African economy will appear strong growth."". She added that the recovery of manufacturing could be short-lived. "Restoring investor confidence is critical for sustained economic recovery," she said. For the time being, we still don't see this."
Nigeria's economic growth is still not strong, but Uzoma Dozi, chief executive of diamond bank, says that investor confidence is showing signs of recovery thanks to increased liquidity in the foreign exchange market.
A senior Nigeria official said he was worried that if oil prices fell again, the recovery could be a flash in the pan. Nigeria's oil industry has been hit hard by low oil prices since 2014. In the two quarter of the year, the industry grew by 1.6%, mainly because of increased oil production in the Niger delta. Agriculture is the second largest growth driver, and also one of the focus of government policy, which has increased by 3%.
With the increase of crude oil output, Nigeria's economy will increase by 2.5% in 2017, still far below the growth rate of about 6% a few years ago.
Thanks to the surge in agricultural output, South Africa has recovered from its second recession in 10 years. The bumper crop of corn made agriculture grow by 34%, contributing 0.7 percentage points to the overall economic growth.
The Reserve Bank of South Africa says it expects the economy to grow by 0.5% this year. In July, the bank cut interest rates for the first time in 5 years because of concerns about the decline in economic growth.
 
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