Akintunde Oyedokun
Research Analyst
Oil prices fell to a two-month low on Tuesday as weak economic data from the U.S. and Germany raised concerns about slowing demand. Brent crude dropped 2.4% to $73.02 per barrel, while WTI fell 2.5% to $68.93.
Market sentiment weakened as U.S. consumer confidence declined sharply and inflation fears grew. Meanwhile, expectations of higher oil output from Russia, Iraq, and Nigeria, along with U.S. support for the Keystone XL pipeline, added pressure on prices.
German Economy Shrinks By 0.2% in Q4 2024 Amid Falling Exports
Germany’s economy contracted by 0.2% in Q4 2024, confirming earlier estimates from the statistics office. Exports of goods and services dropped significantly by 2.2%, marking the sharpest decline since mid-2020. In contrast, GDP had grown slightly by 0.1% in Q3, but overall, economic output for 2024 fell by 0.2% year-on-year.
The downturn was driven by high energy costs, rising interest rates, and increasing global competition, which weakened economic performance. This marks the second consecutive year of contraction, reflecting ongoing challenges in Europe’s largest economy.
Brazil’s Inflation Hits Highest Level Since 2022
Brazil’s IPCA-15 index rose 1.23% in February, pushing annual inflation to 4.96%. The increase, driven by housing and education costs, highlights persistent inflationary pressures. In response, the central bank is set to raise interest rates again in March to curb inflation, which remains above its 3% target.
Rising food prices are also affecting public sentiment, challenging President Luiz Inácio Lula da Silva’s claim that inflation is under control.
Ivory Coast Customs Seize $19m Of Falsely Declared Cocoa Beans
Ivory Coast customs seized 2,000 metric tons of falsely declared cocoa beans worth $19 million at the Abidjan port. The shipment, which was fraudulently declared as rubber to avoid higher taxes, was found in 110 containers. The seizure is the first of its kind and highlights a significant tax evasion effort, as the tax loss on the cocoa should have been 2.9 million pounds. Cocoa, a key ingredient in chocolate, is often smuggled from Ivory Coast to neighboring countries like Guinea and Liberia, where traffickers pay higher prices to farmers. Investigations are ongoing, with sources pointing to corruption and departmental complicity as possible factors in the scheme.
Nigeria’s Services Sector Leads Economy To Fastest Pace Growth In 3 Years
Nigeria’s economy grew 3.84% year-on-year in Q4 2024, marking its strongest growth in three years, driven by the services sector. Full-year growth reached 3.40%, up from 2.74% in 2023. However, the growth remains below the 6% target set by President Tinubu. Nigeria plans to rebase its GDP data to reflect emerging sectors like ICT and e-commerce. Despite challenges, including a slight dip in oil output, growth in agriculture and industrial output showed positive trends. The IMF projects a 3.2% growth for Nigeria’s economy in 2025.
