KPMG, in a report titled ‘2023 Global Economic Outlook’, has predicted that Nigeria’s Gross Domestic Product, GDP, will grow at a relatively slow pace of 3% in 2023 due to challenges associated with the naira redesign and political transition.
According to the multinational firm, an expected slowdown in the global economy and its trade and financial flow implications are likely to drag on the country’s GDP.
BizWatch Nigeria understands that Nigeria recorded eight consecutive quarters of growth in GDP, following its exit from the pandemic-induced recession in 2020.
The Nigerian economy ended the past year with a GDP growth rate of 3.52% in Q4 2022 compared with 2.25% in Q3 2022 with growth averaging 3.10% over 2022.
The report also noted that key non-oil sectors such as manufacturing, trade, accommodation, and food services will be negatively affected by the naira redesign policy introduced by the Central Bank of Nigeria in the last quarter of 2022.
“We expect Nigeria’s GDP to continue to grow at a relatively slow pace of 3% in 2023 due to the slowdown in economic activity that typically characterizes periods of political transition in Nigeria.
“Furthermore, the spillover from an expected slowdown in the global economy in 2023 and its trade and financial flows implications are expected to drag on GDP.
“Consequently, growth will be negatively affected by the Naira Redesign Policy introduced in Q4 2022 and Q1 2023 and its implications on key non-oil sectors like manufacturing, trade, accommodation and food services, transportation and other services, further slowing down overall GDP growth in 2023,” the report read partly.
