The Special Adviser to the President on Media and Publicity, Femi Adesina has said that despite the COVID-19 pandemic, Nigeria’s economy performed better than that of the United States, United Kingdom, France, Germany and others in the second quarter of 2020.
Adesina said this on Wednesday, August 26 while reacting to the National Bureau of Statistics (NBS) report.
Daily Times recalls that the National Bureau of Statistics (NBS) had said the nation’s Gross Domestic Product, GDP declined by –6.10% (year-on-year) in real terms in the second quarter of 2020, ending the 3-year trend of low but consistently improving positive real growth rates recorded since the 2016/17 recession.
The report added that for the first half of 2020, real GDP declined by –2.18% year-on-year, compared with 2.11% recorded in the first half of 2019.
Adesina said the overall decline of -6.1% (for Q2 2020) and -2.18 per cent (for H1 2020) was better than the projected forecast of -7.24% as estimated by the National Bureau of Statistics.
He said the figure shows that Nigeria’s economy was also relatively far better than many other countries recorded during the same quarter.
In a statement, the media aide said, “Furthermore, despite the observed contraction in economic activity during the quarter, it outperformed projections by most domestic and international analysts.
”It also appears muted compared to the outcomes in several other countries, including large economies such as the US (-33%), UK (-20%), France (-14%), Germany (-10%), Italy (-12.4%), Canada (-12.0%), Israel (-29%), Japan (-8%), South Africa (projection -20% to -50%), with the notable exception of only China (+3%).
“The government’s anticipation of the impending economic slowdown and the various initiatives introduced as early responses to cushion the economic and social effects of the pandemic, through the Economic Sustainability Programme (ESP), contributed immensely to dampening the severity of the pandemic on growth,” he said.
“On the monetary side, moratorium on loans, credit support to households and industries, regulatory forbearance and targeted lending and guarantee programs through NIRSAL were some of the measures implemented in response to the pandemic during the second quarter.
“It is equally worth noting that since the start of the third quarter, the phased approach to easing the restrictions being implemented centrally and across States have resulted in a gradual return of economic activity, including the possibility of international travel.”
According to Adesina, more importantly, the anticipated health impacts of the pandemic had been managed without overwhelming the health infrastructure, which would have further compromised the ability to re-open the country to travel, commerce and international trade.
“Finally, it is anticipated that while the third and fourth quarters will reflect continued effects of the slowdown, the Fiscal and Monetary Policy initiatives being deployed by government in a phased process will be a robust response to the challenges posed by the COVID-19 pandemic.
“Furthermore, as the country begins the gradual loosening up of restrictions, and levels of commercial activity increase by people returning to their various livelihoods and payrolls expand, it still remains imperative that all the necessary public health safeguards are adhered to so the country avoids an emergence of a second wave,” he stated.