Tag Archives: recession
recession: Latest News
Peter Pedroncelli, 1:25 am AFKI Original
The year 2016 was not an easy one for South Africa, but investor outlook for the year 2017 certainly looks more positive. Having survived a tough year, investors are now looking at South Africa to gauge whether or not to invest their funds in the emerging market, but there are a flurry of reasons to give the country a second glance in 2017. We take a look 12 things that are expected to improve investor outlook in South Africa during 2017.
Kevin Mwanza, 7:40 am
Nigeria’s economy sunk deeper into recession after its Gross Domestic Product (GDP) contracted for the third straight quarter of this year by 2.24 percent, according to data released by the National Bureau of Statistics (NBS) on Monday. The dip follows a 2.06 percent decrease in the year’s second quarter as inflation hit an 11-year high of 18.3 percent last month, driven by an acute dollar shortage that has drastically hit the West African nation’s capacity to import.
Staff, 12:02 am
Just as Nigeria prepares to issue its first Eurobond since 2013, S&P Global Ratings has downgraded the economy of Africa’s most populous country further into junk territory. Africa’s wealthiest man, Nigerian billionaire Aliko Dangote, told CNBC he knows what could help Nigeria move out of the recession — selling government assets to the private sector. “Nigeria’s economy has weakened more than we expected owing to a marked contraction in oil production, a restrictive foreign exchange policy and delayed fiscal stimulus,” S&P said Friday in an e-mailed statement after markets closed.
Dana Sanchez, 2:17 pm
Despite doom-and-gloom predictions by economists, this bit of good news for South Africa’s economy augments recent reports that South Africa regained its place as the continent’s biggest economy. Economic growth in the second quarter helped the country escape a predicted recession for the second time in seven years. The surprisingly strong growth mostly reflects a bounce back following the disaster of Q1, an economist said. Few expect the growth to be sustained.
Kevin Mwanza, 8:24 am
Nigeria’s economy, Africa’s second largest, shrunk for the second straight quarter in the three month to end of June officially cementing the country’s first recession in over two decades, figures from the nation’s statistics office showed on Wednesday. Data released by the Nigeria Bureau of Statistics indicated that the country’s gross domestic product (GDP) contracted by 2.06 percent in the second quarter of this year confirming that the West African oil producer was now in a recession
Kevin Mwanza, 4:49 am
Nine Nigerian banks were on Tuesday suspend from foreign exchange transactions for failing to remit up to $2.3 billion, belonging to state-owned oil companies, to the government. The nine lenders include Diamond Bank, Fidelity Bank, First Bank, First City Monument Bank, Heritage Bank, Keystone Bank, Skye Bank, Sterling Bank and United Bank for Africa.
Dana Sanchez, 11:38 am
Occupancy at the Victoria Island hotel and casino fell to 42 percent. Sun International isn’t the first South African company to clash with Nigerian authorities. Telecoms group MTN got a record-breaking multi-billion dollar fine. Nigeria is already in recession and it’s going to last a long time, an economist predicts. This month, South Africa reclaimed from Nigeria the title of Africa’s biggest economy due to appreciation of the rand and devaluation of the naira.
Staff, 4:37 am
The South African rand has regained its position as Africa’s top currency, leapfrogging the Nigerian naira this week. This comes after four major events in recent months: the Brexit vote, the South African municipal election results, the rand gaining more than 16% against the dollar since the start of 2016, and the naira losing more than a third of its value after Nigeria’s central bank removed a currency peg in June. South Africa’s economy was at $301-billion (R4-trillion), while Nigeria’s gross domestic product (GDP) was $296-billion (R3.9-trillion), Bloomberg reported.
Dana Sanchez, 4:03 pm
In the long run, Nigeria will likely regain the title as Africa’s largest economy, but “the momentum that took it there in the first place is now long gone,” an economist told Bloomberg. In the short term, ranking African economies is likely to be determined by exchange rate movements, not growth. South Africa’s economy is more diverse, while Nigeria depends almost completely on oil exports.
Staff, 3:08 am
South Africa has shed almost half a million jobs in the first half of the year – with things not looking like they will improve any time soon as the country heads for 0% growth. Employment data released by Stats SA on Thursday showed that South Africa’s unemployment figures dropped slightly from 26.7% to 26.6% – however 129,000 jobs were still lost in the quarter. In the first quarter of the year, 355,000 jobs were lost, taking the total to just under half a million (484,000) with prospects for the second half of 2016 looking bleak.
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