Economy on fast recovery - CBN

Central Bank ofNigeria (CBN)has said there is ample evidence that the nations economy is recovering fast  from the ravaging effects of the global economic crisis of 2007.In a paper entitled: Output of the Nigerian economySustaining the growth momentum, CBNs Deputy Governor, Economic Policy, Sarah Alade, submitted that the gross domestic product (GDP) was expected to exceed 7 per cent growth during the year, adding that foreign reserve build up helped by the rising oil prices and fiscal consolidation policy had started to manifest on the economy.She noted that the apex bank is taking action to moderate inflation, adding that banking sector recovery is helping to expand credit to the private sector.As part of policy consolidation, the Deputy Governor, pointed out that fiscal tightening would commence with the 2011 budget as deficit spending is expected to decline from 4.6 per cent in 2010 to 3.6 per cent this year.She observed that the banking sector is progressing steadily owing to the activities of the Asset Management Corporation of Nigeria (AMCON), adding that the apex bank would continue to maintain its tight monetary stance.On exchange rate volatility, Alade said steps were being taken to manage it effectively, stating that the introduction of forward sales of foreign exchange and build up of reserve had helped in stabilising the market.The outlook of the economy is good. Continued fiscal reform anchored on sustained government spending and future saving via the sovereign wealth fund, will further strengthens fiscal policy. Also, with the government amnesty programme in the Niger Delta and other various initiatives will cause the economy to rebound, she said.
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