Coronation Merchant Bank releases 2023 economic review, outlook report

Coronation Merchant Bank on Wednesday announced the launch of its 2023 economic review and outlook report, which focuses on trends for core macroeconomic indicators and relevant emerging policy themes that will shape 2023.

This report, 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 sectoral trends, among others.

The report also takes a deep dive into the potential implications of the impending change in administration.

Banjo Adegbohungbe, MD/CEO, commenting on this report, said that “the impact of recent global economic shocks on the Nigerian economy was prevalent in 2022 and is expected to persist in 2023.

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“However, there will be opportunities to unlock new growth, particularly in the second half of the year. This report is a potent tool for decision makers which would assist our clients, investors, and stakeholders to better navigate the current economic environment and achieve their respective strategic goals.”

In her remarks, Chinwe Egwim, Chief Economist of Coronation Merchant Bank, 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, FX liquidity constraints are likely to continue in the near term. It is an election year, and 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.”