CBN MPC notices Vulnerabilities in Advanced economies spill-over to EMDEs

The Monetary Policy Committee (MPC) met on the 19th and 20th of September 2019, in the light of softening global growth and weaker-than-anticipated domestic output recovery. The Committee evaluated developments in the global and domestic economies and examined the outlook for the rest of the year. It noted the build-up of vulnerabilities in major Advanced Economies and its spill-over to the Emerging Markets and Developing Economies (EMDEs). Nine (9) out of the eleven (11) members of the Committee were present at the meeting.

Global Economic Developments
Output growth across major advanced economies remained subdued, confronted by legacy headwinds, including the subsisting trade war between the US and China, regional hostilities in the Middle-East, rising debt levels, growing uncertainties around BREXIT and increasing political tensions between the US and Iran, including fragilities in the financial markets.

In the EMDEs, output growth remained broadly mixed with some economies performing stronger than others.

Consequently, the International Monetary Fund (IMF) revised its projected global growth forecast to 3.2 per cent in 2019 from 3.6 per cent.

Source: CBN