Nigeria Needs Targeted Policy Measures to Grow Economy – Analysts
At all costs, Nigeria’s economy ascended in the third quarter of 2023, halting the previous quarterly decline. The gross domestic product growth report by the National Bureau of Statistics showed that the economy grew by 2.54% year-on-year in real terms to N19.44 trillion.
This growth rate marks an improvement over 2.25% surge posted in the corresponding period and the preceding quarter of 2023. This suggests Nigeria’s economic resilience and its ability to rebound from challenges, according to analysts.
This is also the strongest number on record so far in 2023 amid election jitters and the impact of the various government reforms, Cowry Asset said in its commentary note.
“The 2.54% real growth reflects positive economic dynamics amidst a challenging backdrop marked by a high inflation rate, a depreciating currency, elevated unemployment, pervasive poverty, and persistent security concerns”, the investment firm said.
Analysts noted that despite these formidable obstacles, various sectors contributed to the growth, although falling short of the nation’s anticipated sustainable growth potential of 5% to 6%.
The Services sector’s dominance, coupled with recovery in Agriculture and Industry, underscores the country’s resilient effort toward economic diversification.
However, the economic hurdles, particularly inflation and unemployment, require targeted policy measures to navigate the complexities and achieve the aspired double-digit economic growth in the near term.
In the face of adversities, Cowry Research maintains a cautious 2023 GDP forecast at 3%, acknowledging the positive momentum but emphasizing the need for proactive policies to address the multifaceted challenges hindering Nigeria’s journey towards sustained and inclusive economic growth. Naira Devaluation Deepens Economic Crisis in Nigeria
