daniel chigunwe
High energy prices and foreign exchange demand pressure will weigh on Nigeria’s economy, according to the Central Bank of Nigeria.
In its latest statement following the Monetary Policy Committee (MPC) meeting, the bank moderated the outlook for the global and domestic economies.
The real Gross Domestic Product (GDP) grew by 2,31 percent in the first quarter of 2023, compared with 3,52 percent in the preceding quarter, the statement said, citing data from the National Bureau of Statistics.
“While growth moderated, it has remained positive since Q4 2020. This steady and positive performance was driven largely by sustained growth in the services and industry sectors, supported by broad-based measures by both the monetary and fiscal authorities,” it said.
The economy will continue to recover moderately through 2023 to grow by 2,66 percent, the CBN said, compared to a 3,20 percent estimate by the International Monetary Fund.
The MPC noted a continued uptick in inflationary pressure, as headline inflation rose by 38 basis points to 22,79 percent in June 2023 from 22,41 percent in the previous month, driven by the moderate increases to both food and core components.
The key developments likely to sustain upward pressure on domestic prices in the short to medium term are the recent deregulation of petrol prices and the transition to a unified and market-determined exchange rate, the statement added. — zawya.com
Bongani Ndlovu