May 9, 2022/Cordros Report 

Please click to view the April 2022 Macro & Markets Update

 The International Monetary Fund in its April edition of World Economic Outlook Update revised global economic growth downwards to 3.60% in 2022 and 2023 – lower than the 4.80% and 3.80% projected in January 2022.

• In the Global space, data on Gross Domestic Product (the broadest measure of economic activities) in the United States came in worse than expected.
  

• Inflation in Nigeria continues to run hot as the National Bureau of Statistics revealed that consumer prices for the month of March 2022 rose by 15.92% (y/y), 22bps higher than the 15.70% (y/y) recorded in February.
  

• The ripple effect of the 18-months postponement of petrol subsidy removal by the Federal Government is beginning to come to bare as the 2022 Appropriation Act and Fiscal framework was revised in the past month.
  

• During the previous month, liquidity in the money market shrank, with average Open buy back and Overnight rates rising by 775bps and 750bps to 12.25% and 12.50% respectively.
  

• In the outgone month, Brent crude price faced several pressures from the demand side ranging from a) the increasing covid cases and lockdowns in major cities in China which led to drop in oil demand b) protracted geopolitical uncertainties between Russia and Ukraine c) stronger greenback and lastly, the heightened inflationary pressures.
  

• Bullish sentiments resurfaced at the local bourse in the month of April, following the first monthly decline (-0.91%) of the year recorded in the previous month. Month-on-Month, the NGX-ASI rose by 5.69% to settle at 49,638.94pts.