By Isaac Aimurie
The Edo State Governor, Mr. Godwin Obaseki, has said that the economy of the State is projected to grow from N2.5 trillion in the outgoing year 2022 to N2.63 trillion in 2023.
Obaseki said this while presenting the proposed 2023 budget to members of the Edo State House of Assembly on Wednesday, in Benin City.
Speaking on Macroeconomic assumptions, the Governor said: “The Nigerian economy recovered from the -1.92% economic slump in 2020 as a result of Covid-19 lockdown to achieve a 3.4% growth in 2021.
“The economy has shown signs of resilience and continuous recovery into 2022, with real GDP growth in the first and second quarter of 2022 at 3.11% and 3.54% respectively, averaging 3.33% so far in 2022.”
He added: “In the same vein, the economy of Edo State is forecasted to continue to grow from N2.4 trillion in 2021 to N2.5 trillion in 2022, and further to N2.63 trillion in 2023; this represents a GDP growth trajectory (above the national average) of 4.2%, 5.2% in 2022 and 2023 respectively.”
Obaseki assured that “The growth of the national and State’s economy will enhance the standard of living of our citizens, create employment opportunities and boost Edo State’s fiscal position.”
“Mr. Speaker, it is important to note that exchange rate volatility and inflation are the two major risks facing our economy today (a combination of which has constrained our ability to deliver more results from the 2022 budget),” he added.
On the economic outlook for 2023 fiscal year, he said: “We have formulated our 2023 Edo State budget at a time of major instability and downward slump in the global and domestic economy.
“The gradual but steady recovery from the COVID-19- induced economic crisis has been countered by global energy crisis, high inflation, and the consequences of Russia’s invasion of Ukraine.
“As a result, the International Monetary Fund (IMF) and the World Bank have projected the global economy to grow by 2.7% and 3.0% (respectively) in 2023, a sizeable decline from the 6.0% growth in global GDP in 2021.”
“The 2023 Edo State budget proposal is premised on an inflation worst-case-scenario rate of 25% (with an associated trickle down impact of 40% on commodities, basic goods and services), and an exchange rate of N470 to the US$. The budget is therefore designed to mitigate the impact of inflation and exchange rate risks on the State’s economy.
“The 2023 budget is also designed to deliver a target 5% GDP growth (relative to the 3.75% GDP growth targeted by the FGN); this will stimulate employment opportunities for our teeming youths and foster economic well-being for our citizens.”
