Another Recession Looms With ‘Adverse Consequences’-Says Buhari

Coastal News

The government says it working to ensure a rapid recovery in 2021.

Nigeria’s economy may relapse into a second recession in four years with significant negative consequences, President Muhammadu Buhari has said.

He said this during the 2021 budget presentation to a joint session of the National Assembly on Thursday.

The proposed expenditure is put at N13.08 trillion with crude oil benchmark price of $40 per barrel and daily oil production estimate of 1.86 million barrels.

The budget includes a N1.35 trillion spending by government-owned enterprises and grants and aid-funded expenditure of N354.85 billion.

In his presentation, the president said the 2021 budget was prepared amidst a challenging global and domestic environment due to the the COVID-19 pandemic, low oil prices and heightened global economic uncertainty.

The Nigerian economy is currently facing serious challenges, he said, with the macroeconomic environment being significantly disrupted by the pandemic.

Real GDP growth declined by 6.1 percent in the second quarter of 2020, according to the National Bureau of Statistics.

“This ended the three-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017. I am glad to note that, through our collective efforts, our economy performed relatively better than that of many other developed and emerging economies,” Mr Buhari said.

“GDP growth is projected to be negative in the third quarter of this year. As such, our economy may lapse into the second recession in four years, with significant adverse consequences.

“However, we are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years,” he said.

The government is counting on its over N3 trillion economic stimulus plan to reduce the impact of that recession.

Shrinking

In August, Nigeria’s economy witnessed it’s biggest decline in 10 years, according to a report by the NBS.

Dangote adbanner 728x90_2 (1)

The economy contracted by 6.10 per cent in the second quarter of 2020 from 5.06 per cent in the first quarter and 5.15 per cent in the second of 2019.

An economy is said to be in a recession when its size falls for two consecutive quarters, that is six months.

The Nigerian economy suffered its last recession in 2016.

Source: Premium Times

About Coastal Times

COASTAL TIMES ( THE CREEK WAY ) Coastal Times is an Online News platform that brings you all Breaking News, Analysis, Exclusive Interviews and Stories, from the Coastal Region of Niger Delta. With Coastal Times, you do not need to worry on how to search or source for the latest News. As we will be bringing direct to you, every News as it breaks. Our reportage is most professional, simple and well detailed, to enhance easy comprehension. We report News ranging from LOCAL, NATIONAL AND INTERNATIONAL. In order to keep you informed at all times. At Coastal Times, we are also into Events promotion, Business promotion, Brands promotion and other related services, at an affordable rate. So do well to contact Coastal Times, for your Breaking News, Analysis, Exclusive Interviews, Events, Business and Brands promotion. It is our topmost priority at Coastal Times, to keep you informed. As well as satisfying your demands. To get all our Breaking News, Analysis, Exclusive Interviews and Stories at your fingertip, follow us on our social media handles. FACEBOOK https://www.facebook.com/Coastal-Times-News-109483043893758 TWITTER https://twitter.com/TimesCoastal?s=08 & INSTAGRAM https://www.instagram.com/coastaltimesnews?r=nametag For Promotion of your Event, Business and Brand, contact us at, 08145845113 08103147502 08139808901 07047331011 You can as well send us an email via: coastaltimesnews1989@gmail.com To check out our website, Visit WWW.COASTALTIMESNG.COM. Thanks and God bless you. Signed: Comrade Freeborn Abraye CEO COASTAL TIMES, For The Management. © Coastal Times.

View all posts by Coastal Times →

Leave a Reply