Global Economy –Rundown:
The United State and China phase 1 trade resolution is expected to be signed in the coming weeks, while the trade path is said to be at the translation stage, while prominent area of the trade dispute that focus on Intellectual Property, Technology transfers and Perceived Currency Manipulation, were covered in the Phase 1 of trade resolution expected to be ratified. Given the level of optimism of trade resolution was responsible for the Northward trend of global stocks.
The European Union is posed for a reset into the EU/US trade relations, as the union representative is set to meet with its United State counterpart, the focus of the reset will cover issues like; tariffs on steel and aluminum and the United State retaliatory tariffs in response to the European Digital Tax.
Domestic Economy –Rundown:
The Nation’s foreign reserves as at 31st December, 2019 stood at $38.60Bn, which represent a 10.40% decline, compared to the value of the reserve as at 1st January, 2019 that stood at $43.08Bn. The downward slide was blamed on the Mono Revenue structure of the Nation’s Economy, as Crude Oil contribute over 60% to the Government Fiscal Revenue and maintaining over 90% of forex inflow of the country, as such the country is not immune from any unfavourable fluctuation in crude price.
According to a report credited to Fitch credit rating agency, which reported that the Country’s debts to Revenue ratio for year 2020, is anticipated to be about 400% against the current ratio of 333%.