GDP Report: Comercio Partners Advises Investors Promising Industries

Investment banking company Comercio Partners Limited has advised investors to concentrate their attention on sectors that are well-positioned to benefit from the present macroeconomic trends as identified in the Gross Domestic Product, GDP report for 2022.

On studying the recently issued National Bureau of Statistics, NBS, GDP data for the fourth quarter of last year, Q4’22, Tosin Osunkoya, co-founder and CEO of Comercio Partners Asset Management Ltd, offered this advise.

Among other things, the NBS report showed that while the economy recorded GDP growth of 3.52 per cent, Year-on-Year, YoY, in Q4’22, up from 2.25 per cent in Q3’22, it however recorded a lower annual GDP growth of 3.1 per cent, YoY for Full Year 2022, FY’22, down from 3.4 per cent in FY’21.

Osunkoya noted though the economy recorded lower GDP growth in FY’22 due to the combined effect of the high inflation levels triggered by the Russia war in Ukraine as well as the 19.22 per cent contraction in the oil sector, the performance of the Services sector which continued in to improve in 2022 represents a major silver lining.

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He added that the impact of the improved performance of the Services sector is reflected in the higher real growth of 4.4 per cent, YoY recorded in the Non-Oil sector in Q4 ’22.

Speaking on investment opportunities highlighted in the FY” 22 GDP performance of the economy, Osukoya stressed that though there are areas of concerns, namely the continued contraction in the oil sector and hushed growth in the agricultural sector, investors should focus their attention on specific industries that are strategically positioned to profit from the current macroeconomic condition.

He said: “With the oil sector’s enormous influence on the Nigerian economy, its ongoing decline—which was marked by a negative growth rate of -14.93% in Q4 2022—is a major cause for concern”.

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