In its International Global Economic Outlook report – H1 2023, released on Tuesday, KPMG provided more specifics about this prediction, noting that “unemployment is expected to continue to be a major challenge in 2023 due to the limited investment by the private sector, low industrialization, and slower than required economic growth and, consequently, the inability of the economy to absorb the 4-5 million new entrants into the Nigerian job market every year.”
The research also stated, in part, that due to the slowdown in economic activity that often characterizes periods of political transition in Nigeria, it is anticipated that GDP will continue to rise at a relatively moderate rate of 3% in 2023.
Additionally, the GDP is anticipated to be negatively impacted by the trade and financial flow repercussions of the anticipated global economic recession in 2023.
The Naira Redesign Policy, which was implemented in Q4 2022 and Q1 2023, as well as its effects on important non-oil sectors like manufacturing, trade, accommodation and food services, transportation, and other services, will also have a negative impact on growth, the report stated, further slowing overall GDP growth in 2023.
In terms of the economy’s recovery, it was predicted that the oil sector, trade services, and telecommunications would all rebound due to steps being done to address security concerns.
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