THE NEWSGHOST, NIGERIA – The federal government (FG) of Nigeria on Thursday, September 28, 2017, said that Nigeria may still go back into recession despite its recent exit from recession because the country is not totally immune to economic downturn, report says.
Udo Udoma, the Minister of Budget and National Planning, made this statement yesterday while giving a speech at the National Economic Council meeting presided over by Vice President (VP) Yemi Osinbajo at the Presidential Villa, Abuja.
He stressed that Nigeria’s economy can still experience recession and only focused policy implementation can help the country sustain the current recovery.
While giving highlights of the meeting, Laolu Akande, the spokesman of VP Osinbajo, said the minister noted that unemployment and underemployment remained a challenge to the nation’s economy.
Akande said Udoma gave the council a breakdown of the performance of the different sectors of the economy. According to him, the breakdown shows that agriculture had the highest Gross Domestic Product growth.
According to report, the minister’s statement read in part:
‘The minister invited the council to note that the NBS has published the GDP for the economy for Q2 2017; that the economy has now recovered from recession growing 0.55% in the second quarter of 2017, with Agriculture growing at 3.01% in Q2 2017, Industry growing for the first time in nine quarters by 1.45%, while Services contracted by -0.85%.
‘That the recovery was driven largely by growth in agriculture, manufacturing, crude oil and gas production, solid minerals, financial services, and electricity supply.
‘That headline inflation has trended downwards every month since January, though further developments in food prices still need to be watched closely.
‘That the economy is sustaining the growth in capital imported into the country with improvement in foreign reserves and trade balance.
‘That unemployment and underemployment remain a challenge for the economy.
‘That despite these improvements, the economy is still deemed vulnerable to shocks and focused policy implementation is required to sustain the recovery; and the need to continue implementing the ERGP for sustainable development.’