- Warns Of Imminent Protracted Recession
By Nse Anthony-Uko
(Sundiata Post) — The Peoples Democratic Party (PDP) has described as insufficient and insignificant for national prosperity the 0.55 per cent Gross Domestic Product (GDP) growth recorded in the second quarter of 2017.
The Party also cautioned that a protracted recession may be imminent if the current APC-led administration continues with its “incompetence, lack of economic direction and incoherent economic policies” which led the country into, and then prolonged recession in the first place.
The Party, in a statement signed by its National Publicity Secretary, Prince Dayo Adeyeye said that the figures, when considered along with inflation rate of 16.05 per cent and an annual population growth rate of approximately 2.67 per cent per annum, made it impossible to escape the conclusion that the recovery of the Nigerian Economy is weak, feeble and insufficient to herald the sort of celebration and backslapping being displayed by officials of this APC led-Administration.
Comparing Nigeria’s growth to that of South Africa, which also emerged from a recession, the Party noted that the South African economy grew by a more impressive 2.5 per cent after contracting by 0.3 per cent and 0.6 per cent in Q4 2016 and Q1 2017, respectively.
“At this point, it is necessary to sound a note of caution! It is imperative to reiterate the Warning of the last Monetary Policy Committee (PMC) Meeting to the effect that the Nation is at risk of falling into a more protracted recession if strong and bold monetary and fiscal policies are not activated immediately to sustain our exit from recession.
“This warning is very necessary in the light of the incompetence, lack of economic direction and incoherent economic policies of the Buhari Administration which led us into, and then prolonged recession in the first place. It is clear that a continuation of the Administration’s incoherent economic policies and its penchant for governance by propaganda will only lead us down a more dangerous path.”
“We are of the firm belief that there is nothing to celebrate until the so called economic growth improves the harsh living conditions imposed on millions of ordinary Nigerians by the Buhari Administration’s incoherent economic policies and is reflected in a reduction of the high cost of goods, services and staple foods necessary for everyday living”
The Nigeria Bureau of Statistics on Tuesday released its Q2 GDP report which showed a growth of the Economy for the first time in six consecutive quarters. The Import of this is that Nigeria has exited its longest recession in almost three decades.
According to the Report, the Nigerian Economy grew by 0.55 per cent in Q2 2017, a marginal improvement compared to -0.91 per cent (revised) in Q1 2017 & -1.49 per cent in Q2 2016. This growth falls way short of the 6.54 per cent GDP growth in the corresponding quarter of 2014, which was our last full year in office. It also falls significantly below the 3.96 per cent growth in Q1 2015, which was our last full quarter in office.
