By Yinka Ajayi
As Nigeria recovers from recession, the Wealth Management Chief Investment Office, CIO, of UBS international, in its latest report on Africa’s sovereign credit prospects has said the nation’s growth rates are unlikely to return to previous high.
The UBS, is a wealth management company based in 54 countries of the world.
According to the report; ‘’Nigeria, Africa’s largest economy has seen several credit rating downgrades in recent recovery in energy prices and the potential for further moderate upside should bode well for the sovereign’s creditworthiness.
‘’In the CIO’s findings, macroeconomic prospects in the region are beginning to improve.
‘’The International Monetary fund (IMF) forecasts real GDP growth to almost double this year in Sub-Saharan Africa, reaching 2.6 percent , while fiscal and current account deficits are expected to have peaked at 4.5 percent and 4 percent last year, respectively.
‘’Key drivers supporting the outlook include rising global growth and trade, a modest recovery in energy and metal prices for African currencies, and structural reforms in a range of countries,’’ The report said.
Micheal Bollinger, Head of Emerging Market Asset Allocation of the CIO said: “ We expect Nigeria, Africa’s largest economy, to recover from recession this year although it is unlikely that grow rates will return to previous highs.”