Business
IMF’s “A Rocky Recovery” Report: Global Growth To Bottom Out In 2023
According to the IMF’s latest World Economic Outlook (WEO) Update Report for April 2023 titled “A Rocky Recovery”, global growth will bottom out at 2.8% in 2023 before rising modestly to 3.0% in 2024. The report states that the baseline forecast is for growth to fall from 3.4% in 2022 to 2.8% in 2023, before settling at 3.0% in 2024.
The report mentions that advanced economies will experience a pronounced growth slow down, from 2.7% in 2022 to 1.3% in 2023. The report further highlights that the economic slowdown this year is concentrated in advanced economies, especially in the Euro area and the United Kingdom. The report predicts that growth will fall to 0.8% and -0.3% this year before rebounding to 1.4% and 1% respectively.
The report also states that, despite a 0.5 percentage point downward revision, many emerging markets and developing economies are picking up, with year-end to year-end growth accelerating to 4.5% in 2023 from 2.8% in 2022.
Economic growth in Sub-Saharan Africa is projected to remain moderate at 3.6% in 2023 before picking up to 4.2% in 2024. Economic growth in Nigeria is projected at 3.2% in 2023 and 3.0% in 2024.
The report predicts that global inflation will fall, though, more slowly than initially anticipated, from 8.7% last year to seven percent in 2023 and 4.9% in 2024. The report also warns that inflation is slowly falling, but economic growth remains historically low, and financial risks have risen.
It also states that policymakers need a steady hand and clear communication. With financial instability contained, monetary policy should remain focused on bringing inflation down but stand ready to quickly adjust to financial developments.
Fiscal policy, it states, can also play an active role by cooling off economic activity, tighter fiscal policy would support monetary policy, allowing real interest rates to return faster to a low natural levels.
It also admonishes regulators and supervisors to act now to ensure that remaining financial fragilities do not morph into a full-blown crisis by strengthening oversight and actively managing market strains.
The report also highlights the importance of ensuring proper access to the Global Financial Safety Net, including the IMF’s precautionary arrangement for emerging markets and developing economies.
Nokia has reported a net loss of €68 million for the first quarter of 2025, a sharp decline from the €438 million profit recorded during the same period last year.
The Finnish telecoms equipment maker attributed the downturn to global trade disruptions and recently imposed tariffs by the United States.
The company’s net sales dropped slightly to €4.4 billion, down by one percent year-on-year.
READ ALSO: Trade War: China Strikes Back Wth 125% Tariffs On U.S. Goods
Tariff-related challenges were highlighted by Nokia’s President and CEO, Justin Hotard, who acknowledged the broader economic pressures affecting the industry.
“We are not immune to the rapidly evolving global trade landscape,” Hotard stated. “However, based on early customer feedback, I believe our markets should prove to be relatively resilient.”
He also noted the potential short-term financial impact, saying, “Based on what we see today, we currently expect a EUR 20 to 30 million impact on our comparable operating profit in the second quarter from the current tariffs.”
Earlier this month, U.S. President Donald Trump introduced a 10 percent tariff on global imports, while pausing plans for steeper duties, including a proposed 20 percent levy on products from the European Union.
Despite the quarterly setback, Nokia expressed confidence in its growth prospects.
The company is looking to its Network Infrastructure, Cloud and Network Services, and Mobile Networks divisions to drive sales in the year ahead.
In a sign of continued momentum in the mobile segment, Nokia also announced on Thursday that it had extended its contract with T-Mobile US.
The company said it is continuing “to see positive signs of stabilization” in Mobile Networks.
The pull of market forces which moved the hands of the Nigerian National Petroleum Company Limited (NNPC Ltd) to reduce the price of Premium Motor Spirit (petrol) to N880 per litre in Lagos and N935 in Abuja appears to be a source of torture to independent markets.
Biztellers reports that the latest price review on Easter Monday saw NNPC retail outlets in Lagos drop from N925 to N880, while those in Abuja adjusted from N950 to N935.
The NNPC Ltd’s price reduction came barely a week after the Dangote Refinery lowered its ex-depot price from N865 to N835 per litre.
ALSO READ: BREAKING: Again, Dangote Cuts Petrol Price To N835 per Litre
In addition, the $20bn refinery also directed its partners like MRS, Heyden, and Ardova to sell a litre of petrol at the rate of N890 instead of N920 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
Consumers can smile because with the reaction, the NNPC Ltd’s new price in Lagos is N10 lower than what the Dangote Refinery is selling at, which might lead to another reaction, as the price war between the two companies.
Though some NNPC Ltd’s retail outlets were observed selling at the old rate in Lagos, it was gathered that they were given the liberty to exhaust old stock before adjusting to the new prices.
Market sources are of the view that the current price war was ignited by the Federal Government’s implementation of the Naira-for-crude policy.
Gold soared to a record high of $3,500 an ounce on Tuesday, as mounting fears over a potential U.S. recession and escalating tensions between President Donald Trump and the Federal Reserve drove investors toward the traditional safe-haven asset.
The precious metal briefly touched an all-time high of $3,500.10 an ounce before retreating slightly to trade at $3,467.87.
READ ALSO: JUST IN: Vatican Discloses Cause Of Pope Francis’ Death
The rally marks the latest in a string of record-breaking gains for gold, fueled by a weakening U.S. dollar, sharp declines across global stock markets, and growing concerns over the health of the world economy.
Market sentiment took another hit this week after President Trump ramped up his trade war with China, slapping fresh tariffs on the world’s second-largest economy and intensifying fears of prolonged economic disruption.
Gold has surged more than 30 percent since the start of the year as investors seek refuge from mounting market volatility.
“The rally reflects ongoing recession fears in the U.S. economy and heightened political tensions, especially as President Donald Trump continues to attack Federal Reserve Chair Jerome Powell,” said Rania Gule, senior market analyst at trading group XS.com.
Concerns about the Fed’s independence were further stoked Monday, when Trump publicly lashed out at Powell on social media, branding him a “major loser” for not cutting interest rates — a move the president has repeatedly demanded.
The sharp criticism follows Trump’s recent suggestion that he might attempt to remove Powell from his post.
‘Na Dreadlock Dey Cause Insecurity?’ – Daddy Showkey Slams Gov Bago Over Arrest Order
$1bn Crypto Fraud: Court Authorizes EFCC To Arrest Six CBEX Promoters
Jude Okoye Freed After Two-Month Detention Over Alleged N1.38bn Fraud
Obi, Kwankwaso Helped Tinubu In 2023, Will Do The Same In 2027, Says Nigerian Activist
Ibas Makes First Appearance At NEC Meeting As Rivers Sole Administrator
