By Afrinvest Research,
FLASHNOTE_Q22018_GDP_Contraction_in_Oil_Compels_Moderation_in_Growth.01
Outlook: Optimistic on Sustained Non-Oil Performance
We retain our growth projections of 2.1% Y-o-Y in FY:2018, below population growth rate of 2.6% and long-term trend of 6 – 7.0%. To achieve this, there is a need for a sustained performance in non-oil output and a recovery in the oil sector. We believe the non-oil sector will receive a boost from budget releases for capital expenditure and election spending. Also, the recovery in the oil sector is within reach if production numbers pick up, as the price of crude has continued to trend above US$70.00/b.