The Nigerian Economic Summit Group (NESG) has made projection that Nigeria will experience stronger economic growth as business activities increase in the remaining part of the year.
Speaking at the third edition of the Mid-Year Review of 2023 Economic Outlook, organised by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies (CIBNCFS) in Abuja, the chief executive officer (CEO) of NESG, Laoye Jaiyeola, said the private sector performance is notably responding favourably to the current policy posture of the new government amid the challenges.
Noting that the Purchasing Managers’ Index (PMI) is considered a perfect predictor of economic growth momentum in Nigeria and across the globe, he said that there is a likelihood for stronger than expected economic growth in the remaining part of 2023 as firms’ new orders, output growth rate, and inventory activities increase.
Explaining that the predicted initial policy shocks might increase inflationary pressure and worsen the cost of living crisis if not properly managed, he expressed that convergence of foreign exchange market rates would reduce currency risks adding that the new policy regime would stimulate investors’ confidence in the economy.
Jaiyeola however, added that the monetary policy interest rate would likely rise until the end of the year.
Emphasising on the socio-economic outcomes, Jaiyeola noted that the initial policy shocks from foreign exchange rates convergence and petroleum subsidy removal would heighten the cost of living.
He said the situation would push more people into the poverty bracket as higher inflationary pressure would erode purchasing power of many households.