Dear All,
The Russia-Ukraine war, its push on commodities prices, and its impact on price levels were the major themes that shaped the global scene in 2022. As a result, monetary policy authorities have not been sparing in their move to fight rising prices, hiking rates aggressively. In 2023, we expect monetary pivoting to set in, premised on the gradually abating inflation and general monetary policy tones. Nonetheless, the effect of the accumulated rate hikes is expected to lead to a slowdown in some economies.
In Nigeria, the real Gross Domestic Product (GDP) sustained an upbeat in 2022, expanding by 2.25% YoY in Q3:2022. The oil sector maintained a slide while the non-oil sector has been the growth driver. We expect growth to slow down in 2023 as the effects of the recent flooding will be felt in the agricultural sector, and the monetary policy tightness would slow the real sector.
Furthermore, we highlight the key themes that affected financial markets in 2022. We also outline our outlook for the financial markets in 2023 while highlighting strategies for value creation.
