Global Macroeconomic Review
United States: In November 2024, the U.S. economy demonstrated remarkable resilience by adding 227,000 jobs, a substantial recovery from October’s revised figure of 36,000. The previous month’s underperformance was primarily due to disruptions from two major hurricanes and a Boeing workers’ strike. The sectors driving job growth included healthcare, leisure and hospitality, government, and transportation equipment manufacturing. However, this robust job creation coincided with a slight uptick in the unemployment rate to 4.2%, its highest in six months…
United Kingdom: The UK economy contracted by 0.1% in October 2024, marking its second consecutive monthly decline. This downturn, the first back-to-back contraction since the COVID-19 pandemic, preceded Finance Minister Rachel Reeves’ announcement of a £40 billion tax-raising budget. Businesses expressed concerns over a £25 billion increase in employers’ national insurance, fearing it could stifle hiring and drive-up prices…
Domestic Macroeconomic Review
Upsurge in Inflation; Contracting PMI; Decline in Capital importation.
Nigeria’s inflation rate accelerated in November 2024 to 34.60% y/y, up from 33.88% in October, marking the third consecutive monthly increase and the highest level in over six months. This figure surpassed the projected 34.30%, driven primarily by rising food prices, exchange rate volatility, and higher costs for transport, housing, and utilities. Food inflation climbed to 39.93% from 39.16% despite temporary relief from the harvest season. Flooding in agricultural hubs like Borno and elevated fuel prices pushed transportation costs upward, erasing earlier gains. Additionally, the government’s delay in implementing a 150-day food import waiver exacerbated food inflation. Core inflation, excluding food and energy, also edged up to 28.75% in November from 28.37% in October, signaling persistent price pressures…
Market Update
Foreign Exchange Market: The Nigerian Foreign Exchange Market (NFEM) in December showcased a notable improvement in liquidity, largely attributed to the introduction of the “BMATCH” trading platform and increased dollar sales from exporters. Throughout the month, the Naira progressively strengthened, supported by a higher supply from foreign portfolio investors and weak importer demand. Exchange rates fluctuated between $/₦1,500 and $/₦1,693, with the Naira closing at $/₦1,535.82, appreciating by 8.18% in the NFEM window…
Money Market: In December, system liquidity showed significant movements, influenced by various inflows and outflows. Early in the month, FAAC disbursements and remita inflows boosted liquidity, reducing interbank rates. However, liquidity tightened due to substantial NTB and OMO auction settlements, pushing rates higher. The Overnight Policy Rate (OPR) and Overnight Rate (O/N) peaked mid-month at 32.54% and 32.92%, respectively, before easing slightly by month’s end, closing at 27.67% and 28.17%…
