Econ­omy will not re­cover be­fore 2017 – Ex­pert

Daily Trust - - BUSINESS - From Sun­day Michael Ogwu, La­gos

The Chief Ex­ec­u­tive Of­fi­cer (CEO) of Fi­nan­cial Deriva­tives, Mr Bis­marck Re­wane, has said that the Nige­rian econ­omy will not wit­ness real re­cov­ery be­fore the first quar­ter of 2017.

Bis­mark was re­act­ing to the Na­tional Bureau of Statis­tics (NBS) con­sumer price in­dex which gave Nige­ria’s in­fla­tion rate as 16.5 per­cent in June.

The renowned econ­o­mist whose com­ment was mon­i­tored on the Chan­nels Tele­vi­sion news, said: “The econ­omy will re­cover, not this year, but in the first quar­ter of 2017.”

He said that the coun­try was in a re­ces­sion be­cause it had two quar­ters of neg­a­tive growth, adding that there would be a third quar­ter of neg­a­tive growth and a full year of neg­a­tive growth. Bis­marck said: “We are now the 8th coun­try with the high­est in­fla­tion rate in Africa. In­fla­tion is set to de­cline be­cause month-on-month in­fla­tion ac­tu­ally slowed, even though year-on-year went up to 16.5. It is go­ing to de­cline be­cause of base year ef­fects, con­sumer re­sis­tance to high prices and in­creased out­put.”

He, how­ever, pointed out that ef­forts to re­cover the econ­omy were the re­spon­si­bil­ity of the fis­cal au­thor­i­ties such as the min­istries of fi­nance, works and in­vest­ment who should put to­gether a stim­u­lus pack­age.

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