Business
World Economy To Improve By 2011 – Survey
Employers will hire more workers this year, and the economy will grow faster than envisioned three months ago, according to an Associated Press survey that found growing optimism among leading economists.
But unemployment will stay chronically high, nearly 9 percent by year’s end, the latest quarterly AP Economy Survey shows.
A majority of economists say it will be 2016 or later before unemployment drops to a historically normal rate of around 5 percent.
Economists have become more confident 19 months after the worst recession since the Great Depression ended. Lower Social Security taxes and higher stock prices will embolden Americans to spend more and help power the economy, they say.
“People will finally recognize that an economic recovery is under way,” said Lynn Reaser, a board member of the National Association for Business Economics. “This won’t be a recovery seen only by economists.”
The gains this year will be enough to withstand the threats still clouding the economy, the AP survey found. A majority of the economists doubt, for example, that falling home prices and higher mortgage rates will pose a major risk to the economy in 2011.
The AP survey collected the views of 42 private, corporate and academic economists on a range of indicators. Among their forecasts:
The economy will grow 3.2 percent this year, compared with the 2.7 percent they forecast in October. That would top last year’s estimated growth of less than 3 percent.
Employers will create a net total of 2.2 million jobs. Three months ago, the economists predicted 1.6 million jobs would be added in 2011. Last year, employers added roughly 1.1 million.
Consumers will spend 3.2 percent more this year than last year. That’s stronger than the 2.5 percent growth the economists had forecast in October. And it’s nearly double the spending growth that’s estimated for 2010.
Inflation will be 1.8 percent this year, barely more than the 1.7 percent the economists forecast in the previous survey and up only slightly from 1.5 percent last year. The 1.8 percent forecast falls within the range of inflation the Federal Reserve thinks a healthy economy needs.
Among the reasons for the economists’ growing optimism: an extension of income-tax cuts, a cut in Social Security taxes for workers, easier access to loans, higher stock prices and a government that seems more sympathetic to the priorities of businesses.
The brighter outlook is also evident among people responsible for hiring.
Jerry Huddleston, human resources manager of the Ozark Natural Foods grocery store in Fayetteville, Ark., said he plans to hire for busy weekend shifts because sales are improving.
The store is generally slow to add jobs. But Huddleston said business is picking up. Customers seem more willing to pay more for organic milk, vitamin supplements and pre-made vegetarian meals.
“I think people are starting to be more confident that the job they have is the job they will have tomorrow,” he said.
As the economy gradually strengthens, the economists expect interest rates will tick up, as they already have begun to do. They think the yield on the 10-year Treasury note, now at 3.4 percent, will reach 3.6 percent by midyear and 3.9 percent by year’s end. Those higher rates would force up mortgage rates, which tend to track the 10-year Treasury yield.
Yet when asked about a range of threats, from falling home prices and rising energy prices to state budget woes and Europe’s debt crisis, the economists called each a minor risk rather than a major risk to the economy.
In the spring and summer, many analysts had feared the economy might slide back into a “double-dip” recession.
“Consumers and businesses are in a better mood,” said Nariman Behravesh, chief economist at IHS Global Insight. “They are spending a little more freely. Not a lot more freely, but a little more freely.”
That helps explain why Behravesh has lifted his forecast for economic growth in 2011 to 3.2 percent, from 2.2 percent in October.
Still, the Fed said Wednesday that the economy isn’t growing fast enough to lower unemployment and still needs help from the Fed’s $600 billion Treasury bond-purchase program. The bond purchases are intended to lower rates on loans and boost stock prices, spurring more spending and invigorating the economy.
President Barack Obama still faces risks from voters skeptical of his economic stewardship, according to a new Associated Press-GfK poll. More than half disapprove of how he’s handled the economy. Just 35 percent say it’s improved on his watch; 40 percent had said so a year ago.
Business
Private sector gets N2.2tr credit in 30 days — CBN
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
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