RECESSION: NIGERIA JOINS 39 OTHERS

RECESSION: NIGERIA JOINS 39 OTHERS
                           By
                  Nurudeen Dauda
                  November 24,2020
nurudeendauda24@yahoo.com
nurudeendauda24@gmail.com
nurudeendauda.blogspot.com

To begin with , Nigeria has sadly again joined the league of countries in recession. All hands must be on deck towards working our ways out its. The so-called years of economic growth been talked about in the country for many years has little or no impact on many Nigerians . It has often been described by many analysts as jobless growth. All we need is inclusive growth. 

However, It has been widely forecasted by many world economic bodies; such as: the World Bank and the IMF etc., that many countries of the world will experience Economic Recession due to the effects of Coronavirus (COVID-19) pandemic. TheCable published the following as the countries experiencing recession:

(1) United States; (2) Japan; (3) United Kingdom; (4) India; (5) Brazil; (6)Russia;(7) South Africa; (8)Austria; (9)Germany;(10)Switzerland; (11) Belgium; (12)Canada; (13) Denmark; (14) Estonia; (15) Finland; (16) Hungary; (17) Ireland; (18) Italy; (19) Latvia; (20) Lithuania; (21) Mexico; (22) Netherlands; (23) Norway; (24) Romania; (25) Spain; (26) Peru; (27)Turkey; (28) Israel; (29) Poland; (30) Czech Republic; (31) Thailand; (32) Singapore; (33) Malaysia; (34)South Korea; (35) Australia; (36) Portugal;(37)France; (38) Indonesia and (39) Hong Kong.

However, an Economic Recession is measured in terms of two successive quarters of economic growth contraction. On the other hand, an Economic growth is an increase in the production of goods and services in an economy over a period of time .

In economics, a recession is a business cycle contraction when there is a general decline in economic activity. In other word, Recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in Gross Domestic Product (GDP) in two successive quarters.

In my view, this is not a time for "blame game" by the government . It is equally not a time for "politicking" by politicians. It is a time to wake up and do the needful. 

In my thought , Keynesian model is the best model to be used in fighting economic recession. Professor John Maynard Keynes, (1883 –1946), was a British economist, whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

During the Great Depression of the 1930s, Keynes spearheaded a revolution in economic thinking, challenging the ideas of neoclassical economics. He argued that aggregate demand (total spending in the economy) determined the overall level of economic activity, and that inadequate aggregate demand could lead to prolonged periods of high unemployment. Keynes advocated the use of fiscal and monetary policies to mitigate the adverse effects of economic recessions and depressions.

However, we must use the two major policies available to fight what is at hand. We have the Fiscal Policy,  the government should embark on Expansionary fiscal policy in order to increase the level of aggregate demand, through either increases in government spending on capital budget or reductions in tax rates.

We equally have the Monetary policy, the Central Bank should embark on expansionary monetary policy in order to increase money supply, increase quantity of loans, reduce interest rates, and shift aggregate demand to the right.

May God bless Nigeria

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