NIGERIA and Ghana have been assessed to be among the three fastest growing markets among the 25 leading rapid-growth ones in the world in the next two years, a report just released by Ernst and Young has revealed.
According to the global body in its quarterly Rapid-Growth Market Forecast (RGMF), economic expansion in the 25 leading Rapid Growth Markets (RGMs) has started to slow sharply since the beginning of this year but this will only be a temporary blip.
However, Ernst & Young believes that the power sector holds the key to Nigeria’s economic growth and development.
It stated: “There is a mixed picture emerging across the world. Although Asia is likely to lead the way, Africa remains resilient overall, with Ghana and Nigeria among the three fastest growing of the RGMs this year.
“However, Central and Eastern Europe and Latin America are hindered by the slow growth in their key export markets of the Eurozone and United States respectively. If the Eurozone should fall further into recession, RGMF predicts that the Czech Republic and Poland would be pushed into recession, with Hong Kong and Malaysia also hit hard due to their dependence on global trade.
“RGMs, particularly in Asia, have the necessary tools available to ease both fiscal and monetary policy, allowing growth to resume towards the end of the year.”
It added that even with a slowdown in growth, RGMs are likely to weather the Eurozone crisis and will remain the engine of global growth.
According to the report, Gross Domestic Product (GDP) is expected to expand by 4.9 per cent this year in stark contrast to the 0.6 per cent contraction, at best, that is expected in the Eurozone. Output in the RGMs is expected to continue to pick up by 6 per cent in 2013 and 6.5 per cent in 2014.
Senior Economic Adviser to Ernst & Young’s Rapid Growth Markets Forecast, Carl Astorri explained: “The RGMs are well placed to weather the major risks facing the global economy at the present time, given that they have the space to relax fiscal and monetary policy. This has already happened in some RGMs including in all of the BRICs. It is likely that there will be further easing of monetary policy in the months ahead, particularly if the global economy deteriorates further.”
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- Ghana’s growth to remain “quite robust” in 2012, 7% GDP in 2013 – Ernst & Young (ghanabusinessnews.com)
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