Will Nigeria Ever Recover From This Recession


According to the National Bureau of Economic Research (NBER), a recession is defined as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales”. The Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. In a recession, businesses cease to expand, the GDP diminishes for two consecutive quarters, the rate of unemployment rises and housing prices decline. The World Bank Group says Nigeria will soon recover from economic recession, that’s some very good news. Mrs Eme Essien-Lore, Country Manager in Nigeria, International Finance Corporation, a member of the group, made the observation in an interview with journalsits in Lagos on Thursday. ”In our perspective and with the numbers that we have seen coming from the World Bank and the International Monetary Fund (IMF), Nigeria’s economy has recorded about one per cent real growth. ”That is a bit lower than government’s expectation which is about 2.2 per cent growth for 2017. “It is a bit modest, but we certainly expect that the economy of Nigeria will rebound and recover from last year’s recession, ” she said. Essien-Lore in the same vein commended Federal Government`s new economic plan, but said that there was need to set priorities for implementation of the plan by the year 2020. According to her, the plan is very comprehensive, ambitious and thoughtful. She said that the World Bank had been consulting with the Nigerian Government on the plan, saying that the bank was happy that the plan had been published. For Nigeria also, economic experts have said that the drop in inflation figure from 18.72 in January to 17.78 per cent in February was a signal that the country’s economy would overcome recession soon. The experts told the News Agency of Nigeria (NAN) on Wednesday in Abuja that the 0.94 per cent inflation decline was an indication that recession could end before the end of the second quarter of 2017. The National Bureau of Statistics (NBS) February Consumer Price Index (CPI) indicated that inflation rate dropped to 17.78 per cent for the first time in 15 months. Mr Lawrence Ode, a development economist while reacting to the decline, told NAN that the reduction signified the commencement of a drop in the rising cost of goods and services in the country. Ode said that the current inflation figure would ultimately have a positive effect on the purchasing ability of Nigerians and was capable of growing the country’s Gross Domestic Product. Mr Moses Odo, a Banker also told NAN that the current decline in inflation figure would impact positively on lending rate by deposit money banks and cause interest rates on loans and advances to reduce. He said it would also stimulate the confidence of foreign investors to consolidate their investments in the country. Odo attributed the drop in inflation rate to a major slump in the core inflation sub-index at the rate of 16 per cent on all items, except food, in the month under review. Odo said it was very necessary for government to further inject additional funds to boost economic activities. (NAN)

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Mercy Asiegbu is a creative writer, astute thinker and an imaginative-clarify content writer, utilizing every possible form of writing to educate, inform, entertain and present life by Original Design. Follow me on Twitter @bluenaza and on Facebook- Asiegbu Chinaza Mercy.

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