New Report Shows Why Nigeria’s Economy Remains Fragile
Nigerian economy seems to have seen the worst after it suffered a recession between 2016 and 2017.
But it may not yet be over as new report shows the economy remains weak and risks another depression.
This is according to the 2017 Nigerian Gross Domestic Product Report (Expenditure and Income Approach), released on Monday by the National Bureau of Statistics (NBS).
It showed household final consumption in 2017 fell by -0.99% from 2016 in real terms, although it increased by 9.77% nominally.
This means that with implementation of the 2018 budget still being delayed and inflation seeing only a marginal decline, many household are having to lesser disposable income to spend.
As it is, without such household income increasing, indicating weaker purchasing power, the economy can only get weaker and weaker.
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Indeed, weak household consumption growth indicates weak recovery of the domestic economy, while the nominal growth reflects the increase in prices over the year of 2017.
One of those who agree that the economy remains in a bad position is the Lagos Chamber of Commerce and Industry, LCCI.
The chamber had insisted that the economy remains fragile going by recurring challenges that continue to create concerns about prospects for sustainable poverty reduction.
Specifically, the Chamber noted that continued delay in the passage of 2018 budget, high cost of operations for businesses, insecurity, unfavourable policies, among others contributed significantly in slowing down economic growth.
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