By Franca Ofili
Abuja – An economist, Prof. Akpan Ekpo, on Wednesday said the fiscal elements of the budget should be implemented to sustain the country’s exit from recession
Ekpo, Director-General, West African Institute for Financial and Economic Management (WAIFEM), made the suggestion in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday.
He said that it would take time for the masses to feel the positive impact, except government implemented the social programme in the budget without delay
“Technically the economy is out of a recession but note that the growth of two quarter Gross Domestic Products (GDP) of 0.5 per cent is very marginal.
“The exit from recession was driven by increased crude oil production, near stability of the exchange rate and reduced imports.
“It will be sustainable if the fiscal elements of the budget are implemented and the Central Bank of Nigeria pursues a monetary policy which will reduce interest rate to stimulate investment.
“Remember that recessions are permanent features in capitalist market-driven economies. They come and go,’’ Ekpo said.
According to him, to minimise out of recession impact, proper macroeconomic management of the economy is crucial.
The National Bureau of Statistics (NBS) on Tuesday announced that Nigeria was out of economic recession.
It stated that the nation’s GDP grew by 0.55 per cent (year-on-year) in real terms in the quarter, indicating the emergence of the economy from recession.
The bureau stated that the figure indicated that the economy was out of recession after five consecutive quarters of contraction since the first quarter of 2016.
An economy is said to be in recession after contracting for two consecutive quarters.
The economy slipped into recession in the second quarter of 2016.
The bureau, however, stated that the growth recorded in the quarter was 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 (–1.49 per cent).
It stated that it was higher by 1.46 per cent points from rate recorded in the preceding quarter, (revised to –0.91 per cent from – 0.52 per cent). (NAN)
