Nigeria economic recession to extend to Q4
The Nigerian economy is not likely to exit the territory of negative growth until the end of 2020, warns the Presidency.
After the GDP report showed Nigeria’s economy shrunk by 6.1 per cent between April and June, President Buhari’s government warned that the economic decline could even stretch beyond 2020.
“It is anticipated that while the third and fourth quarters will reflect continued effects of the slowdown, the fiscal and monetary policy initiatives being deployed by the government in a phased process will be a robust response to the challenges posed by the COVID-19 pandemic,” said a statement issued by the presidency on Wednesday.
Policymakers face a raft of challenges. Inflation rose to 12.82% in July, its highest level in more than two years, and the unemployment rate stood at 27.1 per cent in the second quarter.
Nigeria’s economy was already grappling with sluggish growth before the pandemic following a 2016 recession. The International Monetary Fund has said it sees Nigeria’s GDP falling 5.4 per cent this year, while the government has said the economy may shrink by as much as 8.9 per cent.