Goodday Nigerians and my friends abroad. If you are living in Nigeria,
Recession shouldn't be a strange word to you as it is being used by even
Nursery School pupils. It is visible to everyone that Nigeria is in
Recession but not many know what Recession means. For the sake or
benefits those that want to know the detailed meaning of Recession, I
decided to come up with this article.
ENJOY READING...
A
recession is a general downturn in any economy. A recession is
associated with high unemployment, slowing Gross Domestic Product (GDP),
and high inflation. GDP is the market value of all goods and services
produced within a country in a given period of time.
The time period most often used is one year, which is then compared to past years as a way to measure the improvement or decline of a country’s economic situation. Some of the measurable items utilized in GDP calculations include the sales of automobiles, food, salon services, financial services, Oil sales, and movie tickets. Generally, the higher the number, the better the economy is doing.
If the GDP number drops below the point where it stood during the prior year, then it is assumed that the economy is lagging. If the GDP numbers decline for two or more quarters, economists believe the country is in a recession.
The blame for a recession generally falls on the federal leadership, often either the president himself, the head of the Federal Reserve, or the entire administration.
Another factor is increased inflation. Inflation refers to a general rise in the prices of goods and services over a period of time. As inflation increases, the percentage of goods and services that can be purchased with the same amount of money decreases.
Reduced Real Wages can lead to Recession. It refers to wages that have been adjusted for inflation. Falling real wages means that a worker's paycheck is not keeping up with inflation. The worker might be making the same amount of money, but his purchasing power has been reduced.
Reasons why Nigeria is said to be in recession are: the inability of State Governments to pay salaries, The federal government move to borrow to fund the 2016 budget, Nigerian companies recording massive losses and some foreign countries shutting down, the increase in the price of fuel, The instability of Nigeria currency against the US dollar, The illegal activities of militants on Pipelines and oil production, The patronage on foreign goods and investors, Massive lay-off of workers in banks and financial institutions.
Nigeria is not the only country that has gone or going through recession. America went on recession around 2007 to 2010 with over 8.7 million jobs loss. It should be noted that the world can go into recession if another World War happens (God Forbid).
A global recession is recession that affects many countries around the world—that is, a period of global economic slowdown or declining economic output. Since World War II there were only four global recessions (in 1975, 1982, 1991 and 2009), all of them only lasting a year
I hope with these few points of mine, you were able to learn one or two things about Recession.
You can also make your contribution on Nigerian Recession. Let us learn together. Thanks.
Edited by: Endy Edeson
Photo News Editor: Endy Edeson
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Emeka Falake
our politicians dey enjoy. naija people dey suffer for this recession
Endy Edeson
with right policies, Nigeria will bounce back. @olajide
Mayor LP
Recession
by its meaning should also includes lost of untraceable billions of
dollars syphoned by our leaders for their pecuniary.
Jeremiah Ademolu
Right policies??? Hope this government know the really meaning
Endy Edeson
@Muyiwa:
you are right. that should be the number one cause of recession in
Nigeria @Jeremiah: why not. we have a professor as Vice President
Mayor LP
Endy Edeson,The
vice president is a square peg in a round hole who know next to nothing
about the way our our country can be salvage from economic doldrums...
He is an erudite lawyer who should rather be effective for the total
transformation and reformation of the judiciary organ.
Nwigwe Chinweikpe
Hold Biafra and Somalia will be a Paradise compare to Nigeria (the evil forest) professor VP mouth piece of
Amarachi Obi-Evergreen
Well spoken
Michael Ohakpugwu
What about the fall of oil price in the international market?
