We have the chosen Nigeria for our economic report.
Added on -2019-09-18
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We have the chosen Nigeria for our economic report. We have chosen the inflation rate forNigeria for our Research. The key economic concern is the higher and persistent inflation rateof Nigeria – the inflation rate is found to be significantly higher than its peers for asubstantial period of time. Another concern is whether this higher inflation will lead tostagflation in the economy. Food remains very expensive among all jumps to 13.7% in 2016.[CITATION Foo16 \l 16393 ]The nation’s average inflation rate is estimated as higher than thatof Africa.NigeriaInflation rateYearInflationrate200517.8620068.2420075.382200811.578200911.538201013.72201110.841201212.21720138.47620148.05720159.018201615.697Source:https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?end=2016&locations=NG&start=2005The data for Inflation rate in Nigeria is collected from the official website of world Bank forthe year 2005-2015. [ CITATION The16 \l 16393 ]The trend of inflation rate over the last ten years in Nigeria is shown in the followingdiagram:
2004200620082010201220142016201802468101214161820f(x) = − 0.05 x + 112.41Nigeria : Inflation rate ( 2005-2016) The above trend line has shown that inflation in Nigeria has spiked over the last two years.The higher inflation is triggered by the fall in global oil price. Data from Nigeria’s NationalBureau of Statistics confirms that Africa’s largest economy, Nigeria, has slipped intorecession in 2016. The higher inflation rate is compounded by fall in real GDP and highunemployment rate. This is a worrying concern as it is the signs of a clear case forstagflation.The major problem lies with the falling government revenue over the last few years. Theconsistent fall in the oil price plays a major role here. Oil is the major exports for Nigerianeconomy- a fall in the oil price drastically reduce government revenue. Now Nigeria has todepend on the imported raw materials and goods that have driven up the cost of production.The cost push inflation has driven up the price level to substantially high. Global fall in oilprice since mid-2014 is identified as the key driver for high inflation in Nigeria. According tothe economists of Bloomberg , the situation could get worse and inflation could even reachto19% . Moving forward, this remains the key economic challenge for Nigeria.[ CITATIONYom16 \l 16393 ]
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