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US, China stocks gains, dollar weaker as Democrats win House

By News Desk,

Wall Street stock futures and Asian shares held earlier gains on Wednesday after Democrats won control of the U.S. House of Representatives, boosting the party’s ability to block President Donald Trump’s political and economic agenda.

The Democrats’ House win creates a clear hurdle for Republicans to easily pass legislation through both chambers of Congress, clouding the outlook for some of Trump’s key economic proposals.

In Asian trade, major broadcasters projected the Democrats would wrest House control, while the Republicans were seen retaining the Senate.

While both outcomes were broadly in line with market expectations, a reason markets did not sell off, the prospect of political gridlock creates some uncertainty for investors. The dollar weakened against most of its major counterparts.

In equities markets, U.S. S&P500 futures ESc1 rose 0.3 percent, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent and Japan’s Nikkei gained 1.2 percent

“It has clearly become difficult for Republicans to pass additional tax hikes or amendments to Dodd-Frank regulations (on financial institutions) for instance,” said Tomoaki Shishido, fixed income analyst at Nomura Securities.

Investor sentiment had been volatile in Asian trade with stocks and the dollar swinging on the Republicans’ fluctuating prospects of retaining the House.

While a split Congress would put a brake on Trump’s agenda, such as tax cuts or deregulation, some investors think the Democrats may agree to more spending.

“There are still areas with compromise for spending, so even with a split government I expect more fiscal stimulus ahead. There is some possibility for compromise on infrastructure spending as well,” said Steve Friedman, New York-based senior economist at BNP Paribas Asset Management.

“If there is additional fiscal stimulus, it suggests that fiscal policy is more of a tailwind for U.S. growth and it should, all things equal, be supportive for stocks.”

On the other hand, many investors also expect Trump to continue to take a hard line on tariffs, which he can impose without Congressional approval. That keeps alive worries about a trade war between China and the United States.

Trump’s massive tax cut, enacted in December, and a spending agreement reached in February have helped lift the U.S. economy, but they have also widened U.S. federal budget deficit.

As a result, Treasury supply has been growing, pushing U.S. bond yields higher.

The election results pushed down the 10-year U.S. Treasuries yield about 2 basis points to 3.193 percent, off its seven-year high of 3.261 percent touched a month ago. But the debt market also remains under pressure from this week’s record volumes of longer-dated government debt supply.

Oil prices were soft after a 2 percent fall the previous day, with U.S. crude futures hitting an eight-month low as Washington granted sanction waivers to top buyers of Iranian oil and as Iran said it has so far been able to sell as much oil as it needs to.

U.S. West Texas Intermediate (WTI) crude CLc1 futures traded 0.5 percent lower at $61.91 a barrel having hit a low of $61.31 on Tuesday, the weakest price since March 16.

In the currency market, the dollar dipped on the U.S. election results. Against the yen, it was 0.2 percent lower at 113.23, reversing earlier gains to one-month high of 113.82 yen.

The euro rose 0.3 percent to $1.1467 and the British pound gained 0.3 percent to $1.3140, hitting a three-week high.

Sterling extended gains made the previous day on hopes of a Brexit deal breakthrough after Brexit Secretary Dominic Raab said “Thumbs Up” on his way out of a cabinet meeting.

That helped sterling recover losses following remarks from a senior member of the Northern Irish Democratic Unionist Party earlier that it looked like Britain would exit the EU without a deal.

Osinbajo, Ambode, Sanwo-Olu monitor Tradermoni disbursement in Lagos

By Olawale Abdul-Fatah

Vice President, Prof. Yemi Osinbajo and Lagos State Governor Akinwunmi Ambode, monitored the Tradermoni scheme in the state, targeted at assisting traders to boost their businesses in the country.

It would be recalled that scope behind the scheme was to ensure that two million petty traders receive N10, 000 and on repayment of their loan, receive 15, 000 and on and on.

Osinbajo, who was also accompanied by All Progressives Congress, APC governorship candidate Lagos, Babajide Sanwo-Olu, visited Ketu, Bariga and Oshodi markets.

In an interview with newsmen after the inspection, Senior Special Assistant to the Vice President on Media, Laolu Akande, stressed that the visit to the state was to see the impact of the scheme.

He added that the visit was also to assure the traders not captured among the two million beneficiaries that they would be captured in the next tranches.

“And the visit of the president to Lagos was to see the impact of the scheme and interact with the traders in markets. And he assured them that the fund will be increased to capture more people.

“Our plan is that between now and December, we would have captured the two million traders. Already, we have handed the fund to 800, 000. We have enumerated all the two million and we know who they are.

“That doesn’t mean that this is the end of the programme. Our plan is to achieve the two million before the end of the year and add more people to subsequent tranches,” he added.

The Vice President’s aide stated that the initiative launched under the Government Enterprise and Empowerment Programme, GEEP, in partnership with the Bank of Industry BOI, has assisted 1.1 million Nigerians.

According to him, over 1.1 million Nigerians – market women, traders, artisans, farmers – are currently beneficiaries of GEEP, which comprises FarmerMoni, MarketMoni and TraderMoni.

“There are over 809,000 beneficiaries under TraderMoni while the rest were beneficiaries of FarmerMoni loans and MarketMoni for farmers and Small and Medium Enterprises, SMEs in the country.”

Earlier, Executive Director, Bank of Industry, Toyin Adeniji, urged beneficiaries to refund the loan within six months.

“It isn’t a national cake. The fund is targeted at empowering the traders. We expect that if they pay back, they are not only helping themselves but also the community.

The Chief Officer of GEEP, Uzoma Nwagba, said there were other products such as the ‘Farmers Moni’, which provides farmers the opportunity to access loans up to N300,000.

He urged beneficiaries to do their best to pay back the loans so that others can get the opportunity to benefit from the programme.

AfDB gives $50m to Fidelity bank for SMEs

By News Desk,

The African Development Bank (AfDB) has approved a $50 million line of credit to Nigeria’s Fidelity Bank Plc to support small and medium sized.

The money is also meant to support women-owned enterprises in selected transformative sectors, including close to a hundred SMEs in manufacturing, health and education.

Approved by the Bank’s Board on 10 October 2018, the facility is fully dedicated to financing micro, small and medium sized enterprises (MSMEs), with a minimum of 30 percent going to women-owned enterprises.

The loan will enhance Fidelity Bank’s liquidity and help meet the demand for medium-term funding to players in the target sectors, contributing to improved quality of lives, job and wealth creation and tax-revenue generation.

The facility complements the Government of Nigeria’s long-term development strategy, as espoused in its Vision 20:2020 agenda.

Aligned with Nigeria’s Economic Recovery and Growth Plan 2017-2020 (ERPG), the funding will ultimately boost enterprise competitiveness and expand Nigeria’s economic base.

The ERPG seeks to stimulate Nigeria’s economic growth, catalyse macroeconomic stability, foster diversification of the economy, and enhance social inclusion as well as governance.

According to AfDB, SMEs account for 30 per cent of Fidelity Bank’s loan portfolio.

The selection of the tier 2 Nigerian bank for this seven-year credit facility (with a grace period of two years) is based on its strong niche presence in the SME and mid-sized corporate space.

It is also in recognition of the bank’s credit management and strong track record with the African Development Bank. The Nigerian lender has previously received US$18 million and US$75 million lines of credit from the development finance institution in 2001 and 2013, respectively.

“Fidelity Bank is a niche player, focused on the SME space and this US$50 million credit line will contribute to strengthening its presence in its key market segments,” said Ebrima Faal, Senior Director, Nigeria Country Office at the African Development Bank.

“The Nigerian financial institution also continues to meet its ongoing credit obligations under the terms of previous support received from the African Development Bank.”

The line of credit to the Nigerian financial institution is consistent with the Bank’s Ten-Year Strategy (2013–2022). It also aligns with two of its High 5 priorities – Industrialize Africa and Improve the quality of life for the people of Africa.

Founded in 1987, Fidelity Bank Plc has grown from its marginal position into a stable banking institution.

Currently the 10th largest commercial bank in Nigeria by asset size, it was listed on the Nigerian Stock Exchange in May 2005.

It has a broad client base of about four million customers nationwide, served from a network of over 240 branches and business offices, supported by alternative service delivery channels like ATMs, mobile and electronic banking, and agency banking channels.

Following its renewed digital banking and retail drive, Fidelity Bank was ranked 4th best bank in Nigeria in the retail market segment in the KPMG Banking Industry Customer Satisfaction Survey (BICSS) in 2017.

U.S.-China trade war ends 1 million U.S. jobs promise – Jack Ma

By Business Desk,

Alibaba Chairman, Jack Ma said the company can no longer meet its promise to create 1 million jobs in the United States due to U.S.-China trade tensions, Chinese news agency Xinhua reported on Wednesday.

Ma has already warned that the trade war between the world’s two largest economies could last decades and that China should focus exports on the “Silk Road” trade route, citing Africa, Southeast Asia and Europe.

Ma met U.S. President Donald Trump two years ago and laid out the Chinese e-commerce giant’s plan to bring one million small U.S. businesses onto its platform to sell to Chinese consumers over the next five years.

“This commitment is based on friendly China-U.S. cooperation and the rational and objective premise of bilateral trade,” Ma told Xinhua on Wednesday.

“The current situation has already destroyed the original premise. There is no way to deliver the promise.”

While Ma had not detailed how he would add those jobs, he has said that he wanted to encourage American small businesses to sell on Alibaba marketplace Tmall and Taobao, reasoning that every new business that joined the platform would have to hire a person to manage the extra sales.

Investors seemed unfazed by Ma’s comments, with Alibaba shares closing up 3.8 percent on Wednesday. They have declined 5.7 percent so far this year, including those gains.

Trump on Monday imposed 10 percent tariffs on about $200 billion worth of imports from China, and threatened duties on about $267 billion more if China retaliated.

China responded a day later with tariffs on about $60 billion worth of U.S. goods as planned, but reduced the level of tariffs it will collect on the products.

Ma’s latest comments come on top of others he recently made about the escalating trade skirmish and show his support for Beijing’s stance on how additional tariffs will affect businesses and the country’s cornerstone One Belt One Road foreign policy initiative.

“The U.S. like competition, China likes harmony, they’re two different cultures,” Ma said at an investor conference in Shanghai on Tuesday.

Nigeria records first strong GDP growth after recession

By News Desk,

The Nigerian Bureau of Statistics (NBS) has reported that for the first time since Nigeria’s exit from recession, the Gross Domestic Product (GDP) has recorded growth.

Driven by the non-oil sector, GDP which grew by 2.05 per cent in the second quarters of 2018 represented the strongest growth in non-oil GDP since fourth quarter of 2015.

“Non-oil GDP growth was -0.18% in Q1 2016, -0.38% in Q2 2016, 0.03% in Q3 2016, -0.33% in Q4 2016, 0.72% in Q1 2017, 0.45% in Q2 2017, -0.76% in Q3 2017, 1.45% in Q4 2017and 0.76% Q1 2018.

“GDP grew strongly in Q2 2018 by 2.05%. Non-oil growth was driven by transportation which grew by 21.76% supported by growth in construction which grew by 7.66% and electricity which grew by 7.59%.

“Other non-oil sectors that drove growth in Q2 2018 include telecommunication which grew by 11.51%, water supply and sewage which grew by 11.98% and broadcasting which grew by 21.92%.’’

The non-oil sector performance was however constrained by agriculture that grew by 1.3% compared to 3.00% in Q1 2018 and 3.01% in Q2 2017.

Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95% compared to 14.77% in Q1 2018 and 3.53% in Q2 2017

Services GDP recorded its best performance in 9 quarters, growing by 2.12% in Q2 2018 compared to -0.47% in Q1 2018 and -0.85% in Q2 2017.

Statistician General and Chief Executive Officer of National Bureau of Statistics (NBS), Dr. Yemi Kale, last week denied reports quoting that Nigerian economy had yet to recover from recession.

Kale categorically said that Nigeria was out of recession and that at no time did he suggest otherwise.

His denial was contained in a statement released on Monday by the Bureau’s Public Relations Officer, Mr. J. Ichedi.

NBS said that it reported in the second quarter of 2017 that the country was out of recession as the country recorded the first positive growth in Gross Domestic Product (GDP) following five quarters of contradiction.

He said that economic growth as measured by GDP has remained positive ever since with 0.72% in second quarter of 2017; 1.17% in third quarter of 2017; 2.11% in fourth quarter; and 1.95% in first quarter of 2018.

Ichedi said that NBS had continued to explain that there would be economic recovery after the recession.

The economic after recession moves gradually towards sustainable strong growth which “is the stage we are now’’.

This is the position which the CEO told Arise Television in an interview, he said.

The CEO, he said, told the television that the economy was in the second state of recovery and heading toward sustainable growth which is the last stage’’.

“This should not be wrongly interpreted as the economy is still in recession,’’ Ichedi said.

According to a report by a local newspaper on Monday, the Statistician-General was quoted to have lamented the performance of the nation’s economy in the second quarter of the year.

Nigerian banks are hiring more staff

By News Desk,

Nigerian banks are hiring more staff, indicating that the sector is booming.

The National Bureau of Statistics revealed in its latest report that the number of bank staff in the second quarter that ended in June, increased by 13.67 per cent, from 89,608 in first quarter to 101,861.’’

The NBS also said a total volume of 509,668,433 transactions valued at N32.90trn was recorded in the banking sector during the second quarter.

The NBS made this known  in its “Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018)’’ report released in Abuja.

According to the report, Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded.

It said 217,417,961 volume of ATM transactions valued at N1.6 trillion was recorded in the period under review.

“In terms of credit to private sector, the total value of credit allocated by the bank stood at N15.34trillion as at the second quarter.

“Oil and Gas and Manufacturing sectors got credit allocation of N3.45trillion and N2.02trillion to record the highest credit allocation as at the period under review.

Ethiopian Airlines leads bids for Nigeria Air

By Business Desk,

Ethiopian Airlines already has contracts for maintenance work with two Nigeria-based carriers, Arik Air and Medview Airline, he said.

In May, Tewolde told Reuters that the airline was in talks with Chad, Djibouti, Equatorial Guinea and Guinea to set up carriers through joint ventures. It aimed to create a new airline in Mozambique that it will fully own, the chief executive said at the time.

In June Ethiopia said it would open Ethiopian Airlines and other companies including the telecoms monopoly up to private domestic and foreign investment, but details have not yet been made public.

Tewolde also said that net profit in the 2017/18 financial year rose to $233 million from $229 million the previous year. Ethiopia’s 2017/18 financial year ended last month.

The airline’s operating revenue rose by 43 percent to $3.7 billion in the 2017/18 financial year.

FG, BoI launches direct traders empowerment initiative in Lagos, plan for 2M Nigerians

By Abdulwaheed Usamah

As part of measure  addressing level of poverty in Nigeria, the Federal Government (FG) and Bank of Industry (BoI) have launched an empowerment program, solely designed to assist petty traders boot their businesses, with aim to ensure two million Nigerians directly benefit from the initiative.

Specifically, representatives of both FG and BoI said that the initiative, tagged ‘Traders Moni’, was created to support traders and also address issued non accessibility of average Nigerians to load.

They disclosed that no fewer than hundreds of traders, particularly market women, received N10,000 loan respectively, in Lagos State, where it had kicked off and that it would soon spread across the country in due time.

The Executive Director, Bank of Industry, Toyin Adeniji, indicated that the launched initiative was a demonstration that the bank was not relenting on measure that would make Nigerians have access to loan irrespective of status or level of education.

Briefing journalists at unveiling of ‘Trader Moni’ initiative at Ojuwoye market in Mushin, Lagos on Tuesday,  Adeniji said that the programme which kicked off nationwide,  would support 2 million Nigerians to grow their business.

She informed that the goal of the scheme was to take financial inclusion down to the grass root whereby pure water seller, bead seller, food seller, okada rider among others can access loan to expand their business without any collateral.

The bank’s head claimed that President Muhammadu Buhari led administration recognised contribution of petty traders to economic development and that presidency had concluded to ensure market people enjoy dividend of democracy since it knew they may lack requirements for bank loans.

“The government identified the fact that some of them may not have what the commercial banks may required to grant loan, so he support this initiative to help them grow their business”.

“This ‘Trader Moni’ initiative is a mobile phone driven, after your details have been captured by agent and send to BOI system for validation, within 48 hours you will get cash notification in your mobile wallet account. You can either transfer the cash to your bank account or cash it out in any mobile money agent around.

“At the beginning you can access N10,000 and pay back N10,250 to qualified for N15,000. Once you payback N15,375 you will qualify for N20,000 loan, when you pay back N21,000 you will get N50,000. All these stages have duration of six months interval to pay back.”

“If you wish you can pay back before six month grace elapsed and access bigger loan. To pay back, just entered some of the backs we have partnered with such as Fidelity, Wema Bank, Gt Bank, UBA, Heritage Bank, Stanbic Bank, Sterling Bank, Union Bank Jaiz Bank, tell them that you want to pay BOI-GEEP loan for PayDirect.

Besides, Chief Operating Officer, Government Enterprise and Empowerment Programme, GEEP,  Uzoma Nwagba, noted that GEEP has three product, including that of ‘farmer Moni’, meant for farmers which avail them opportunity to access up to N300,000 loan each.

“We have ‘Market Moni’ which target market women, traders and artisans that are little bigger and more structured, they get between N50,000 and N100,000. The whole initiative is available across the country.

Nwagba urged beneficiaries to ensure they pay back to avail other opportunity to benefit, “All this initiative aimed to expand financial inclusion because we have over 23 million Nigerians that are financially excluded, this administration aimed to reach them so that they can grow their businesses.

China cuts banks’ reserve requirements to boost lending, as trade war looms

By News Desk, with Agency Report,

China’s central bank said on Sunday it would cut the amount of cash that some banks must hold as reserves by 50 basis points (bps), releasing $108 billion in liquidity, to accelerate the pace of debt-for-equity swaps and spur lending to smaller firms.

The reserve reduction, the third by the central bank this year, had been widely anticipated by investors amid concerns over market liquidity and a potential economic drag from a trade dispute with the United States.

But the 700 billion yuan ($107.65 billion) in liquidity that the central bank said will result from the reduction in reserves was bigger than expected.

Expectations of a cut had risen after the State Council, or cabinet, said on Wednesday monetary policy tools including targeted cuts in banks’ reserve requirement ratios will be deployed to strengthen credit flows to small firms and keep economic growth in a reasonable range.

Economists are not ruling out further reserve requirement reductions for the rest of the year as borrowing costs rise due to Beijing’s clamp-down on leverage in the financial system, a campaign now in its third year, while uncertainty over Sino-U.S. trade ties persists.

The People’s Bank of China (PBOC) said on Sunday that the latest targeted cut in some banks’ reserve requirement ratios (RRRs) – currently 16 percent for large banks and 14 percent for smaller banks – will take effect on July 5.

The PBOC said the cut will release about 500 billion yuan ($77 billion) for the country’s five large state banks and 12 national joint-stock commercial banks. Lenders are encouraged to use the money to conduct debt-for-equity swaps.

China’s policymakers have been pushing for debt-for-equity swaps since late 2016 to ease pressure on firms struggling with their debts.

The country’s top banks, controlled by the government, have rushed to sign deals with state-owned enterprises to ease their debt burden and give them time to turn around their business and improve their creditworthiness.

The latest RRR cuts will also release about 200 billion yuan in funding for mid-sized and small banks to increase lending to credit-strapped small businesses, the PBOC said.

The combined 700 billion yuan liquidity injection exceeded market expectations of 400 billion yuan. In the PBOC’s last targeted RRR cut in April, 400 billion yuan of net liquidity was released.

“The intensity of the move exceeded market expectations,” said Wang Jun, Beijing-based chief economist at Zhongyuan Bank.

“This move will help support the real economy and stabilize financial markets. We’ve seen rising debt defaults and funding strains on small firms, as well as a sharp adjustment in the capital market.”

But the latest reserve cut signals a “policy fine-tuning,” not a policy reversal, Wang said.

The central bank said on Sunday it will keep monetary policy prudent and neutral.

Sunday’s announcement followed the worst weekly loss in the Chinese stock market since early February as fears of a full-blown trade war with the United States weighed.

The Chinese yuan on Friday also fell to its lowest versus the dollar in more than five months, though it has remained firm against a basket of trading partners’ currencies, and a sharp depreciation is not in the cards.

TRADE WAR

The latest RRR cut is set to take effect a day before the United States and China are expected to begin collecting increased tariffs on respective lists of goods.

Fears of a full-scale trade war with Washington have magnified concerns about the outlook for the world’s second-largest economy, following weaker-than-expected Chinese growth data for May and as Beijing’s financial regulatory crackdown starts to weigh on business activity.

Net exports overall were already a drag on growth in the first quarter after giving an added boost to the Chinese economy last year, highlighting the need for sustained strength in domestic demand if significant new U.S. tariffs are imposed.

Beijing is also likely to backtrack on efforts to reduce its reliance on debt if the dispute escalates into an all-out trade war, some economists say.

Beijing’s financial risk clamp-down has already slowly pushed up borrowing costs, and is restricting alternative, murkier funding sources for companies such as shadow banking.

Strained liquidity conditions have caused a growing number of credit defaults with private companies facing mounting refinancing risks. Latest official surveys also showed tight funding has hit smaller manufacturers.

The weighted average lending rate for non-financial firms, a key indicator reflecting corporate funding costs, rose 22 basis points in the first quarter to 5.96 percent, PBOC data showed. That compared with a total of 47 basis points in 2017.

Policymakers have been trying to strike a delicate balance between the need for tougher supervision and reforms and ensuring the stability of the financial system, while keeping economic growth on track.

ANZ Research said on Sunday that it still expects another 50 bps RRR cut in October.

Economists still expect China’s economic growth to slow to 6.5 percent this year from 6.9 percent in 2017, citing rising borrowing costs, tougher limits on industrial pollution and an ongoing crackdown on local governments’ spending to keep their debt levels in check.

($1 = 6.5027 Chinese yuan renminbi)

Minister of Finance, Kemi Adeosun

Oil sector 2018 Q1 performance still below 10% GDP

By NewsDesk,

A report released by National Bureau of Statistic on performance of oil sector’s contribution to Nigeria’s Gross Domestic Product, has indicated that industry remains below 10 per cent in Q1 figures of the nation’s GDP .

However, the office reported on Monday that the nation’s GDP grew by 1.95 per cent year-on-year- in real terms in the first quarter of 2018, but that the nation recorded some growth in the oil sector during the period, the contribution formed only 9.61 per cent of the total, with the non- oil sector accounting for the rest.

It said that the development had an increase in the daily oil production to an average of 2.0 million barrels per day (mbpd), higher than the 1.95 mbpd in the fourth quarter of 2017.

As gathered from report,  real growth of the oil sector was 14.77 per cent (year-on-year) in first quarter of 2018, representing an increase of 30.37 per cent points relative to rate recorded in the corresponding quarter of 2017.

According to the NBC, quarter-on-Quarter, the oil sector grew by 13.24 per cent in first quarter, 2018 and the growth was up from 8.53 per cent in the first quarter and 7.35 per cent in the fourth quarter recorded in 2017.

“In comparison, non-oil sector grew by 0.76 per cent in real terms during the quarter under review.This was higher by 0.04 per cent point compared to the rate recorded same quarter of 2017 and 0.70 per cent point lower than the fourth quarter of 2017”.

The report showed that the sector’s growth was driven mainly by agriculture (Crop production), financial institutions and insurance, manufacturing, transportation and storage as well as information and Communication.

In it,  the Non-Oil sector contributed 90.39 per cent to the nation’s GDP, lower than 91.47 per cent recorded in the first quarter of 2017 and 92.65 per cent recorded in the fourth quarter of 2017, while in overall, the Nigerian Gross Domestic Product (GDP) grew by 1.95% (year-on-year) in real terms in the first quarter of 2018.

The bureau stated that the figure revealed that a stronger growth compared with the first quarter of 2017, which recorded a growth of –0.91 per cent indicating an increase of 2.87 per cent points, and that compared to the preceding quarter, there was a decline of -0.16% points from 2.11%, NBS said.

It related that quarter on quarter, real GDP growth was -13.40% as oil production estimates for the third and fourth quarters of 2017 have been revised and oil GDP for those quarters have been adjusted accordingly.

According to NBS figures, aggregate GDP for the first quarter stood at N28.4 trillion in nominal terms.

“This performance is higher when compared to the first quarter of 2017 which recorded a nominal GDP aggregate of N26.028 trillion thus, presenting a positive year on year nominal growth rate of 9.36%. This rate of growth is however lower relative to growth recorded in Q1 2017 by -7.70% points at 17.06% but higher than the proceeding quarter by 2.14% points at 7.22%.