The Global Economic Outlook will start to improve significantly from the beginning of next year following the rise in rates across most Economies of the World.
Investment Analyst and Managing Director of Optimus by Afrinvest, Ayodeji Ebo, disclosed this while speaking on the Investment outlook for the 2023 Fiscal year across Africa and parts of the World.
He added that Inflation will start to moderate from the start of 2023 following the tough stance taken by Central Banks across the World which he added needs to also be brought back down gradually once Inflation subsides.
He disclosed that failure to do this on the part of Central Banks will be a dangerous step for the health of the World Economy whose growth may slow down on the back of such a move.
He however added that the tightening of the Interest rates across the World is a good move for the World Economy.
He said the conflict between Russia and Ukraine if the detente and peace moves gain ground will also go a long way in helping the World Economic and Investment outlook look better and grow.
Going Further, He said the year 2023 Investment and Economic outlook will be scenario based as it will also depend largely on stability within the Euro area and Other parts of the World.
He gave a breakdown of what Afrinvest intends to do in investment in the new year, he disclosed that the MPC will start going down once moderation of the Inflation rate starts.
He also advised those who want to invest in the market to be careful and wary of the indicators so as to guide against making unnecessary losses on the market.
According to him the Equities market will also be a mixed bag which he said will improve after the elections where their is clarity on where the nation is headed with the emergence of a new Leadership.
As for the alternative market, he posited that it will still remain high risk but asked for more cognizance to be taken by investors to be able to take the right decisions.
On his expectation from the next President of Nigeria, he said the common factors across the top 3 candidates that have been identified is the Socialist mind which is behind trying to subsidise everything which makes it seem as if what we currently experience as a nation is a self inflicted problem.
He said the incoming Leadership of the Country must take decisions on Fuel Subsidy, on the issue of an appropriate Foreign Exchange Management and the issue of Subsidy on the Power Sector in such a way that such that government does not need to intervene in their operations.
He added that for FX decisions need to be made faster on when to intervene by bridging demand gaps but objected to a free float of the Naira.
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