THE OIL PRODUCING COUNTRIES IN RECESSION!

THE OIL PRODUCING COUNTRIES IN RECESSION!
                            By: 
                 Nurudeen Dauda
                August 25, 2016
nurudeendauda24@gmail.com
nurudeendauda24@yahoo.com
nurudeendauda.blogspot.com                                    
Nigeria experiences years of jobless economic growth or non-inclusive growth essentially because of high crude oil prices which is the major driver of our economy. Nigerian economy for a decade grew at about 6% on quarterly basis, but unfortunately for us the growth was not occasioned by posterity to ordinary Nigerians. 

The following oil producing countries are currently in economic recession:
(1) Brazil’s –GDP is growing at a negative 2.5%
(2) Russia’s –GDP is growing at a negative 0.5%
(3) Venezuelan’s –GDP is growing at a  negative 3.3%
(4) Argentina’s –GDP is growing at a negative 0.0%
(5) Ecuadorian’s –GDP is growing at a negative 0.5%
(6) Greek’s –GDP is growing at a negative 1.8%
(7) Nigerian’s-GDP is growing at negative 0.36%.
                                                                    
Recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. Furthermore, a recession is a significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP); 

However, Economic Depression is worst than economic recession: Depression is commonly defined as a more severe version of a recession whereby there is high rate of poverty, unemployment, and inflation etc.  

It is true that our economy was growing at 6% when the price of crude was about $115 a barrel and we were producing 2.2million barrels a daily due to relative peace in the Niger Delta. However, presently crude oil sells at $45 a barrel and due to the unpatriotic activities of the Niger delta Avengers we are only producing about 1.4 million barrels a day which is below our budget estimate of 2.2 million barrels daily. Our economic growth is majorly determined by crude oil production which unfortunately collapses. Indeed the chickens have finally come home to roost!

We need to diversify the economy through agriculture and solid minerals etc., in order to have an inclusive growth not the jobless growth that we have had for years.

May God bless Nigeria!

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