Nigeria Economic Forecast

Nigeria sits along the Atlantic Ocean while also sharing borders with Cameroon, Niger, Benin, and Chad. The size of Nigeria is huge, ranking as number 32 worldwide. Along with a mixture of topography that includes a mix of coastline, mountains, and lowlands, Nigeria boasts one of the most developed economies. In fact, the country is rated as being middle income, a country with well-developed communications, financial, and transport sectors.

Nigeria sits along the Atlantic Ocean while also sharing borders with Cameroon, Niger, Benin, and Chad. The size of Nigeria is huge, ranking as number 32 worldwide. Along with a mixture of topography that includes a mix of coastline, mountains, and lowlands, Nigeria boasts one of the most developed economies. In fact, the country is rated as being middle income, a country with well-developed communications, financial, and transport sectors.

Nigeria also has the second largest stock exchange in Africa with petroleum being the key to this country’s economy. For petroleum producers, the country ranks at number 12 worldwide, making the industry sector responsible for 80% of the GDP and 90% for exports. While petroleum is a crucial sector, Nigeria’s economy lacks in basic infrastructure and is extremely amorphous. Unfortunately, efforts by the Nigerian government to develop sectors outside of industry have failed.

Nigeria GDP Forecast

Pertaining to the Nigeria GDP (Gross Domestic Product, Current Prices, US Dollars), a massive increase internationally in oil prices during 2007 and 2008 closed the GDP at $352.3 billion in US currency. With this number, the country is ranked at number 33 for world rankings. Although predictions for 2010 and later have not yet been provided, most experts believe the GDP will continue to move in a positive direction.

Nigeria Unemployment Forecast

Currently, the Nigeria population is more than 154 million. Unfortunately, reports also show that of the people living in this country, as much as 70% live under the international poverty line. Although petroleum is a significant part of the growing economy, it is depended on too heavily. On a positive note, it is estimated that close to 47.5 million people do work. Most have jobs in the agriculture sector, followed by the industry sector and then services. The biggest challenge is that without many industrial resources, the Nigeria unemployment rate remains too high at 4.9%, up from 4.7% in 2007. Of all problems the Nigerian government faces, unemployment is without doubt the most prevalent. With unemployment where it is, the country ranks at number 151. To help, economic reforms have been introduced to bring poverty levels down and making economic equality a reality.

Nigeria Inflation Rate Forecast

In listening to the Minister of State, it is being reported that the Nigeria inflation rate for year-end 2010 is expected to hit 11.2%. This country will still increase investments such as those for infrastructure, sector reforms, and macroeconomic stability as a means of developing the country further. Because government officials have created a strong banking system, a better unified foreign exchange rate market, and limited inter-bank rate fluctuation, the inflation rate has not seen any dramatic increase. For the year 2010, Nigeria plans to operate on a positive not by establishing intervention funds that would provide commercial farming with credit facilities and support agro-processing linkages so the industry can be sustained. Even so, the government of Nigeria also realizes that for inflation to improve, the country will need to sustain non-oil growth, as well as increase per capita income with reforms and investments for infrastructure.

Nigeria Current Account Balance Forecast

In 2009, the Nigeria current account balance was $12.590 billion in US currency. One year later, the balance experienced an 80.03% reduction, closing 2008 out at $2.514 billion. Another dramatic change occurred from 2008 to 2009, this time 92.80%, which put 2009 at $4.847 billion. Compared to the 2009 numbers, the greatest change was a reduction of 293.81%, closing the year at a negative $9.394 billion in US dollars. To determine the current account balance, the country’s net trade in goods, services, net transfer payments, and net earnings to include internet, rents, profits, and dividends are used. With this, experts can determine the future of a country’s economy, as well as compare the country to other countries to determine overall worldwide ranking.