What trade disputes mean for Nigeria’s economy   

5th September, 2019 : Persistent trade disputes between the world’s two largest economies is set to fuel fears over a global slowdown or even recession. Oil prices declined on the basis that a decelerating global growth may result in lower demand for the commodity Nigeria relies on for 90% of its export earnings.

In the context of a trade dispute, tariffs are like bombs exploding on trading relationships, supply deals and eventually on company profits.

Trade tensions also remain a direct threat to Nigeria's economy. The risk factors are escalating along with the probability that the world may see an economic slowdown in the short-to-medium term.

Under the current circumstances, there are three main challenges Nigeria must navigate. They are China's slowdown, lower oil prices, and the need for fast and adaptive monetary policy to handle local and external shocks.

Reporting for EasyKobo on Thursday , 05 September 2019 in Lagos, Nigeria

Source:  Lukman Otunuga, Senior Research Analyst at FXTM.

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