Data published by Nigeria’s Budget Office this week highlighted that, despite what should be a favourable high oil price environment, the public finances are actually getting worse. With the government’s options to finance a larger-than-expected budget deficit dwindling, officials may be tempted to turn back to deficit monetisation albeit at the risk of exacerbating Nigeria’s other economic problems. Elsewhere, recent Stage 6 loadshedding in South Africa has prompted President Ramaphosa to put forward another plan to deal with the country’s electricity problems. But a swift improvement seems unlikely.
EM Drop-In (4th August, 10:00 ET/15:00 BST): Join our monthly online session on the big issues in emerging markets. In this 20-minute briefing, the team will be answering your questions about debt risks amid global tightening, the latest on the inflation outlook and much more. Register now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services