By Adejumo Enock
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed had said the second recession in five years that Nigeria just slided into will not last.
She disclosed this at the ongoing 26th Nigerian Economic Summit organized by the Nigerian Economic Summit on Monday.
Ahmed said, the country would emerge from the recession in the firth quarter of 2020 or the first quarter of 2021
While speaking she added that before the impact of COVID-19, the country’s economy had experienced sustained growth which had been improving quarter by quarter but when the impact of COVID-19 was felt, the economy deteriorated drastically.
The Finance Minister said other countries are also in recession as the United Kingdom and United States recorded much deeper contraction than that of Nigeria.
She Said “Nigeria is not alone in this, but I will say that Nigeria has outperformed all of these economies in terms of the record of negative growth”.
Similarly, she said South Africa will record a deeper negative growth in Q3 after it has recorded a decline of -50 percent compared to Nigeria’s -6.1 percent in Q2.
“While the economy has entered into recession in the third quarter, the trend of the growth suggests that this will be a short-lived recession, and indeed by the fourth or, at worst the first quarter of 2021, the country will exit recession”. She said
Furthermore, she states that the expectation of a quick exit of the recession will be historically fast and is anchored on the several complementary fiscal, real sector and monetary inventions that have been proactively introduced by government to forestall a far worse decline of the economy and alleviate the negative consequences of the pandemic.