Key Development Updates
Nigeria's 2.55 per cent GDP growth in Q4 2019 is highest rate since 2016
Nigeria’s Gross Domestic Product (GDP) grew by 2.55 per cent year-on-year in the fourth quarter of 2019, according to the latest GDP report released by the National Bureau of Statistics (NBS). The figure is the highest quarterly growth rate since 2016.
The country's annual real GDP growth rate for full year 2019 was 2.27 per cent, which improved from 1.91 per cent recorded in 2018, according to NBS data.
The oil sector grew by 6.36 per cent in real terms in Q4 2019, while the oil sector contributed 7.32 per cent of the total GDP. For the full year, the sector contributed 8.78 per cent to the GDP.
The key performing areas included information and communication, which grew at 10.6 per cent during the last quarter; agriculture sector grew by 2.31 per cent; financial and insurance services (20.18 per cent), and manufacturing (1.24 per cent). In Q4 2019, the non-oil sector recorded a growth rate of 2.26 per cent, slower than the 2.70 per cent posted in Q4 2018.
The trade sector remained in recession, recording a growth rate of -0.38 per cent in 2019, slightly higher than the -0.63 per cent posted in 2018.
StanChart commits $75 billion towards Sustainable Development Goals
Standard Chartered (StanChart), last month, announced new business targets for supporting its clients as they transition to a low carbon economy as part of its Sustainability Aspirations.
The bank said it has committed to providing $40 billion of project financing services for infrastructure that promotes sustainable development and $35 billion of project financing services, M&A advisory and debt structuring services for renewables and clean tech projects (solar and wind), by 2024.
StanChart said it plans to reduce its emissions across its global properties by 2030. With an office footprint spanning 60 countries, including many large emerging markets, the bank aims to achieve net zero emissions by only sourcing energy from renewable sources and continuing to pursue energy efficiency measures across its 12 million square feet of property.
In October 2018, the bank created the Sustainable Finance team and has since launched sustainable deposit products in London, Singapore, Hong Kong and New York; plus, a EUR500 million Sustainability Bond, the proceeds of which will be used to provide finance in areas aligned with the Sustainable Development Goals – including clean energy projects, smaller business lending and microfinance loans.
Post-Brexit UK exports could fall by $32 billion - UNCTAD
Non-tariff measures (NTMs) could cause major fractures in post-exit trade relations between the United Kingdom (UK) and the European Union (EU), knocking up to $32 billion, or 14 per cent, off UK exports to the EU, according to a new study by United Nations Conference on Trade and Development (UNCTAD) – Brexit Beyond Tariffs: The Role of Non-Tariff Measures and the Impact on Developing Countries.
The UK risks losing up to 14 per cent of its exports to the EU in a “no-deal” Brexit scenario. Non-tariff measures would double losses from tariffs, estimated at 5 – 7 per cent.
NTMs are policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices, or both. They are the key factors mediating market access in the world economy.
In a no-deal scenario, Ireland's exports to the UK are expected to drop 10 per cent as a result of non-tariff measures and tariffs.
On the flipside, exports from developing countries into the UK could increase by 4 per cent, and to a smaller extent into the EU, if the former doesn't increase tariffs for third world countries.
World Bank to focus on fragile and conflict-affected countries to end poverty
Urgent action is needed in countries impacted by fragility, conflict and violence (FCV) to end extreme poverty globally, the World Bank said last month in its new strategy publication.
An animated infographic produced by the Bank shows that 347 million extreme poor lived in fragile and conflict-affected situation (FCS) and 1.355 billion in Non-FCS, in 2000. By 2030, however, there would be acute reversals, based on the current trajectory.
The number of extreme poor living in FCS will rise from 299 million in 2020, to 348 million by 2030; whereas the number of extreme poor in Non-FCS will decline from 295 million to 183 million. Two-thirds of the world’s extreme poor will live in fragile and conflict-affected countries.
Fragile and conflict-affected situations take a huge toll on human capital, creating vicious cycles that lower people’s lifetime productivity and earnings and reduce socioeconomic mobility, the Bank said.
The World Bank Group, which was founded to support post-conflict reconstruction in Europe after World War II, now emphasizes working to tackle poverty. The Bank said it will, along with its subsidiaries, make key operational changes, such as deploying more staff and resources to countries impacted by FCV, partnering with a range of international and local actors, and committing to significantly increase support to private sector investments in economies impacted by FCV.
"To end extreme poverty and break the cycle of fragility, conflict, and violence, countries need to ensure access to basic services, transparent and accountable government institutions, and economic and social inclusion of the most marginalized communities," said World Bank President David Malpass.
The strategy also emphasises long-term support to help countries transition out of fragility, including scaling-up investments in SMEs and addressing the cross-border impacts of FCV.