Analysts Foresee Lower Inflation In 2023 Business
see elevated inflation levels, and we expect that inflation might start to decline. It might not be at the same rate at which it increased, last year but we expect that inflation would decline to an extent.“We expect to expect the CBN to continue to, adopt the hawkish stance, it might not be as aggressive as last year, but we expect interest rates to still remain high, at least for the most part of 2023,” he pointed out.
He added that the foreign exchange market would be stable in the first half of the year and that it would be a burning issue for the next administration.“The exchange rates exchange rates are still a major, major issue in the Nigerian economy. While we really do not expect the exchange rates to decline in terms of the exchange rate between the naira and the USD, we believe we would see some form of stability for now and towards the elections and after the elections.
Meanwhile, he stressed the need for the incoming government to put in place policies that would lure both foreign portfolio investors and foreign direct investors to the country. To him, “Nigeria is at the point whereby we were pressured on every side and we know that the only thing that can actually help us through on the long term is if we have policies that would actually help stimulate growth and so policies are actually attracting foreign investors into our market. So, if we have peaceful elections, it tells the international markets that you know, you can do business with Nigeria.
“I also believe that once that is in place, whoever is going to take over from the current administration, the foreign exchange is a major issue on the table and I’m sure that policies are going to come up, that would actually favor not just for portfolio investments but foreign direct investments, so that would see more dollars come into the economy.”