- The Nigerian Economic Summit Group (NESG) in its latest macroeconomic outlook has warned that due to weak performance of job creating sectors, the unemployment rate in Nigeria is likely to increase to 37 per cent.
The Nigerian Economic Summit Group (NESG) in its latest macroeconomic outlook has warned that due to the poor performance of job creating sectors, the unemployment rate in Nigeria is likely to increase to 37 per cent. For 2023, the Group projects moderation of real GDP growth to 2.98 per cent, with subdued economic growth due to strains on investment and low productivity in critical sectors. The inflation rate is expected to average 20.5 per cent in 2023.
The Group noted that low labour absorption of sectors that will drive growth and population growth estimated at 3.2 per cent would lead to a decline in real per capita income.
During the launch of the NESG 2023 Macroeconomic Outlook Report, Shubham Chaudhuri, Country Director, World Bank, Nigeria observed that Nigeria must invest in human capital, establish the necessary infrastructure, eliminate insecurity, as well as promote the private sector to create more jobs. He advised the Federal Government to be judicious in spending.
Giving the outlook for the year, Head of Research and Chief Economist, NESG, Dr. Olusegun Omisakin, said that though economic growth will be supported by election-related spending and improvement in the oil sector, Unemployment will still remain a major challenge. Food inflation, he said, will drive inflation largely due to the impact of flooding, increased production costs due to higher costs of credit, insecurity and displacement. NESG projection for 2023 he said assumed that crude oil future will average $85/barrel.
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