Nigeria, US to release GDP report

The global economic spotlight shifts to Nigeria and the United States this week as both nations release their second-quarter Gross Domestic Product (GDP) reports. The National Bureau of Statistics (NBS) will unveil Nigeria’s GDP by output report for Q2 2024 on Monday, August 26, while the US Bureau of Economic Analysis will release its GDP report on Thursday, August 29.

Nigeria’s Q1 2024 GDP growth rate of 2.98% exceeded expectations, driven primarily by the Services sector, which contributed 58.04% to the aggregate GDP. However, the Purchasing Managers’ Index (PMI) declined in June and July, signaling a slowdown in growth.

The NBS will also release the Federal Account Allocation Committee (FAAC) disbursement report for July 2024 on Wednesday, August 28, providing insights into the distribution of revenue among the federal government, states, and local government councils.

In the US, the Q2 2024 GDP report is expected to reveal the impact of inflation and interest rate hikes on economic growth. The Federal Reserve’s decision to maintain its benchmark interest rate has sparked market speculation about future rate cuts.

Furthermore, the NBS will release Nigeria’s Labour Force Report for Q2 2024 on Friday, August 30, offering an update on the nation’s unemployment rate, which rose to 5.0% in Q3 2023.

Meanwhile, the Nigerian naira remains under pressure, trading at N1,586.11 per US dollar, despite increased dollar supply and the Central Bank of Nigeria’s interventions. A recent survey by the CBN indicates that Nigerian firms expect the naira to depreciate in the short term but anticipate a positive outlook for the local unit in January 2025.

Economic Spotlight: Nigeria and US GDP Reports Take Center Stage

This week, the global economic landscape will be dominated by the release of crucial Gross Domestic Product (GDP) reports from Nigeria and the United States. These highly anticipated reports will provide valuable insights into the economic performance of both nations in the second quarter of 2024.

Nigeria’s GDP Report (Q2 2024)

The National Bureau of Statistics (NBS) is scheduled to release Nigeria’s GDP report for the second quarter of 2024 on Monday, August 26. The report is expected to build on the positive momentum established in the first quarter, where the economy grew at a faster pace compared to the same period last year. The Services sector, which contributed 58.04% to the aggregate GDP, was the primary driver of growth, recording a 4.32% expansion.

Analysts predict a continued upward trajectory, citing the expansion in the monthly Purchasing Managers’ Index (PMI) as a key indicator. However, a decline in PMI in June and July may suggest a slowdown in growth.

US GDP Report (Q2 2024)

On Thursday, August 29, the Bureau of Economic Analysis will release the US GDP report for the second quarter of 2024. The report is expected to provide clarity on the state of the US economy, which has experienced weaker-than-expected growth and rising prices. The Federal Reserve’s monetary policy decisions will likely be influenced by the report’s findings.

Nigeria’s Labour Force Report (Q2 2024)

The NBS will release Nigeria’s labour force report for the second quarter on Friday, August 30. The report will provide valuable insights into the country’s unemployment rate, which rose to 5.0% in the third quarter of 2023. The statistical agency’s definition of unemployment rate as the share of the labour force who are not employed but actively searching and available for work will be crucial in understanding the report’s findings.

Currency Market Update

The naira remains under pressure, trading at N1,586.11 per US dollar amid rising supply of the greenback. Despite the Central Bank of Nigeria’s (CBN) efforts to shore up the ailing naira through direct dollar sales to businesses, the local currency has barely budged. A recent survey by the CBN indicates that Nigerian firms expect the naira to depreciate between now and December but have a positive outlook for the local unit next January.

Source: businessday