Coronation Merchant Bank, in its 2023 Economic Review and Outlook report, said there will be opportunities to unlock new economic growth, particularly in the second half of the year 2023 despite the impact of recent global economic shocks on the Nigerian economy.
The report focuses on trends for core macroeconomic indicators and relevant emerging policy themes that will shape 2023.
Themed Baton Hand-Off: Economic Headwinds and Expected Resilience, covers global economic headwinds and growth trends, inflationary pressures and expectations, dynamics in the domestic oil market, exchange-rate expectations, thoughts around monetary and fiscal policies and sectorial trends, among others.
The report also takes a deep dive into potential implications of the imminent change in administration.
Commenting on the report, the managing director/CEO of Coronation Merchant Bank, Banjo Adegbohungbe, stated that, “the impact of recent global economic shocks on the Nigerian economy were prevalent in 2022 and are expected to persist in 2023. However, there will be opportunities to unlock new growth, particularly in the second half of the year.”
This report, he added, is a potent tool for decision makers which would assist clients, investors and stakeholders to better navigate the current economic environment and achieve their respective strategic goals.
The chief economist of Coronation Merchant Bank, Chinwe Egwim, in her remarks, opined that “2023 brings with it a mix of economic conditions. We expect the current inflation trend to persist in both advanced and emerging economies.
“The resultant effect of monetary policy tightening is also expected to continue but at a reduced pace given the inflation outlook across markets which points towards gradual moderation in H2 2023.”
For Nigeria, she said, FX liquidity constraints are likely to continue in the near-term, adding that, being an election year, there are concerns around demand-pull inflation on the back of expected spending (naira circulation) associated with electioneering.
“However, implementation of the recent naira redesign policy could assist with abating this inflation risk. There are also concerns around policy continuity post-election, as well as an expected lull in economic activity on the back of the transition phase. Nigeria’s GDP growth is expected to maintain its growth trajectory but at a relatively slower pace in 2023,” she pointed out.
