Nigeria’s economy has been projected to experience stronger economic growth as business activities increase in the remaining part of the year.
This is according to the Nigerian Economic Summit Group (NESG).
Chief executive officer (CEO) of NESG, Laoye Jaiyeola, stated this in an address to 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 Lagos.
He said the private sector performance is notably responding favourably to the current policy posture of the new government amid the challenges.
“The Purchasing Managers’ Index (PMI) is considered a perfect predictor of economic growth momentum in Nigeria and across the globe.
“Hence, 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,” he said.
Jaiyeola, however, predicted that initial policy shocks might increase inflationary pressure and worsen the cost of living crisis if not properly managed, adding that the convergence of foreign exchange market rates would reduce currency risks adding that the new policy regime would stimulate investors’ confidence in the economy.
He further stated that the monetary policy interest rate would likely rise until the end of the year.
Jaiyeola also said the initial policy shocks from foreign exchange rates convergence and petroleum subsidy removal would heighten the cost of living and that the situation would push more people into the poverty bracket as higher inflationary pressure would erode purchasing power of many households.
The Chief consultant, Adedipe Associates Ltd, Biodun Adedipe, in a remark, advised the federal government to learn from countries that had gone through similar problems, to get the economy back on track.