According to the November CBN BES survey, the wholesale/retail trade sector ranks high in the list of fatalistic sectors bound to develop business operations regarding the COVID-19 pandemic’s interruptions of generating revenue in the first and second quarters of this year.
Different companies commenting on employment, expansion, business limitations, currency exchange, borrowing and inflation rates, as well as rate of economic growth during the forecast timeframe were involved in the survey.
- Employment
A favorable business view for December 2020 and January 2021 was revealed by the opinion of the respondent companies on the capacity of business operations. As the outlook was positive, businesses also hope to hire in December 2020 and January 2021.
The decline by sector demonstrates that the wholesale/retail sector, accompanied by the agricultural/services, construction and manufacturing industries, had the greatest prospects for jobs in the next month.
In the next 6 months, as all the benchmarks were productive, respondents were also hopeful about the capacity of business venture and the jobs outlook index.
- Growth
In December, an evaluation of companies with development plans reveals that the wholesale and retail segment has the greatest willingness to widen, followed by the manufacturing industry, then the agricultural/services sector and the construction industry
- Limitations of Business
Inadequate power supply, competitors, undesirable economic situation, high inflation, unclear economic laws, financial issues, undesirable political situation, access to financial services have been outlined by respondent firms.
As key factors limiting business operations in the current month, other limitations are insufficient demand, lack of facilities, lack of materials input and labor problems.
- Rate of Exchange
In the current month, respondent firms expect the naira to drop in value but appreciate in the next month, next 2 months and next 6 months.
- Rates Of Borrowing
In the current month, next month, next 2 months, and the next 6 months, participant firms expect borrowing rates to rise.
- Rate Of Inflation
Companies expect the average rate of inflation to stand at 15.62 and 14.03 percent respectively in the next six months and the next twelve months.
- Development Of Economy
Respondents expect economic conditions to raise over the current month and next month, over the next 2 months and over the next 6 months.
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