Financial analysts have said that the year 2022 will be a critical year for economies across the globe as they navigate through inflation and Covid-19 invested waters.
They said that as major central banks across the globe tighten monetary policy, this may have ramifications on global and emerging markets. Although Covid-19 cases across the world continue to rise, many major economies remain on a fragile road to economic recovery.
Analysts from CMC connects said for Nigeria, the economy is enjoying a period of easing inflationary pressures with the latest figures rising 15.63 per cent in December after eight straight months of decline, adding that Africa’s largest economy still remains exposed to the same external and domestic risks.
Domestically, they said high unemployment, fragile business environment, shaky macroeconomic conditions, dollar scarcity and uncertainty ahead of the 2023 general elections could threaten growth of the nation’s economy while externally oil price volatility, developments revolving around Covid-19, China’s economic growth and tightening financial conditions among other factors will affect the financial system..
The Chief Research Officer, Investdata Consulting Ltd, Mr Ambrose Omordion said that the growth of the stock market and nation’s economy is unpredictable as the country may witness a lot of changes in policies.
He said “factors likely to shape the economy in this year includes 2022 budget implementation, MPC meeting, inflation, December year end corporate earnings, economic data, political activities, fuel subsidy removal, OPEC meetings and economic activities driven by interest rate, inflation and industrial output.”
