Nov 21 (Lagos) - Posting a 2.4% y/y contraction in Q3’17, the weakest since the Nigerian economy took an adverse turn at the start of 2016, the services sector shows the scale of the present slump in the non-oil economy.
With consumer belts still tightened, all major sub-sectors contracted during the quarter. Construction (-0.5% y/y), Trade (-1.7% y/y), and Real Estate (-4.1% y/y), all barometers of confidence and investment, declined during the period. Similarly, ICT (-4.4% y/y) and Finance (-6.0% y/y), previous leading lights, also contracted.
However, the trend in Financial Services is not surprising as we have seen negative to flat loan growth across the sector so far in 2017. Analysts at Vetiva Capital Management Ltd in Victoria Island expect the recession in services to persist till year-end 2017 GDP growth forecast: -1.1% y/y.
reporting for easykobo.com on Tuesday, Nov 21 2017 from Lagos, Nigeria
Source - analysts at Vetiva Capial Management Ltd in Victoria Island, Lagos
If you would like to post comments! Please log in.