Guest Join UsHey Guest,
Welcome, Join our awesome community where you can discuss on various topics :-
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Much More.. or Create an Account

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Economy to shrink by 5.2% in 2020, says NESG
Economy to shrink by 5.2% in 2020, says NESG
August 21, 2020

[/url][Image: Economic-Summit.jpg]

The Nigerian Economic Summit Group (NESG) has said the economy will shrink by 5.2 percent this year.

It called for effective implementation of palliative measures designed to mitigate the effects of COVID-19 on the economy.

The NESG board of directors reviewed the global and domestic economic, financial, and social environments for the half-year (January-June) 2020 as well as the outlook for the rest of the year.

Board chairman, Asue Ighodalo, said in a statement: “The Board notes the expectation, based on the International Monetary Fund’s projection, that the Nigerian economy will shrink by 5.2 percent in 2020.”

[Image: start-load?deviceType=mobile]

The Board noted that economic growth slowed to 1.9 percent year-on-year in H1 2020 (half year), representing its weakest level since Q2’2018.

It said 29 percent of the economy contracted, compared to 13 percent in the same period a year ago.

NESG said: “A review of performance by the various economic sectors showed that the top contributors to economic growth in H1’2020 are: telecoms (52.5 percent), financial institutions (34.9 percent), crude petroleum & gas (24.9 percent) and crop production (24.4 percent).

“The Board also notes the positive inference to be drawn from more recent data showing growth in Value Added Tax (VAT) collection and Federation Account (FAAC) receipts.”

NESG noted the country’s very high debt service-to-revenue ratio.

It said: “While this ratio has improved to 72 percent in May 2020 from 99 percent recorded at the end of March 2020, it remains unsustainably high and undermines the ability of government to meet non-debt obligations…

“As it acknowledges the Federal Government’s drive to improve revenue performance at all levels of the public sector, the Board advices that this drive should be done in such manner that the adverse effects of the COVID-19 pandemic on businesses (large and small, and households) isn’t worsened.

“Furthermore, attention must be paid to the efficiency and effectiveness of government spending.

“There is also a need to intensify efforts at providing an enabling environment and attracting investment (domestic and international) needed to stimulate output growth and ultimately revenue.”

NESG said Nigeria continues to deal with the impact of COVID-19 pandemic.

“To alleviate the burden imposed by this pandemic on Nigerians, all tiers of government must ensure that the various palliative measures announced are effectively implemented to reach the people for whom they are intended speedily and efficiently,” it said.


Possibly Related Threads...
Thread Author Replies Views Last Post
  MTN Nigeria Revenue Rises To N100 Billion Monthly In 2020 Edoman 0 53 11-02-2020, 11:56 AM
Last Post: Edoman
  FG, States, LGs Share N682.060bn As Allocation For August, 2020 Edoman 0 130 09-23-2020, 02:19 PM
Last Post: Edoman
  Zenith Bank posts N103.8 billion half-year PAT September 4, 2020 Zenith Bank Edoman 1 179 09-14-2020, 12:00 AM
Last Post: Mueeidkhatri
  Shrinking of economy: Experts warn of mass poverty, predict recession in Q3 Edoman 0 126 08-27-2020, 11:54 AM
Last Post: Edoman
  Nigeria's GDP Shrinks By 6.10% In Q2 2020 - NBS Edoman 0 152 08-24-2020, 10:46 PM
Last Post: Edoman
  International Flights Resume On 29th August 2020 -Hadi Sirika, Aviation Minister Edoman 1 176 08-17-2020, 09:43 PM
Last Post: Edoman
  CBN boosts economy with N3.3tr credit Edoman 0 177 07-21-2020, 10:14 AM
Last Post: Edoman
  FG, Others Share N651.184bn For June 2020 Edoman 0 180 07-20-2020, 11:15 AM
Last Post: Edoman

Users browsing this thread: 1 Guest(s)


About contripeople

Contripeople forum description.

              Quick Links

              User Links