CBN predicts negative economic growth in Q2

The Central Bank of Nigeria (CBN) predicted negative Gross Domestic Product (GDP) growth for the country in the second (Q2) 2020 owing to COVID-19 pandemic that had affected the .

The CBN Governor, Mr Godwin Emefiele, made the prediction fielding questions from journalists after the Monetary Policy (MPC) meeting in Abuja on Thursday.

Emefiele explained that the reason was the fact that Nigerian , just like global , was shut down during the month of April, May substantially and to some extent also in June.

He said with this development, he was almost certain that growth in second would be in negative.

He further stated that the situation arising from COVID-19 pandemic had led to health and economic crisis of unprecedented proportion.

According to him, the situation affected U.S, Europe and China economies as well as developing countries.

“Luckily and pleasantly surprised, Nigeria first growth in 2020 came down from 2.5 cent from fourth quarter 2019 to 1.87 cent.

“Understandably the virtue of the fact, we began to really lockdown our in the month of March because we were already seeing some interesting growth trajectory in the month of January and February following the recovery that we have made in 2019.

“So, we saw what I could call a somehow pleasant GDP of 1.87 cent” he added.

The governor noted Nigeria was part of global economy and if the country was able to manage this impact as quickly as possible, and join others in getting out of the situation, the better for the nation.

He, however, emphasised the need to work together towards achieving vibrant economy.

“As we begin to see the easing of the lockdown, business begin to come back alive again, we all need to move very aggressively and fast to see that corporate activities are pushed to extent where if we are lucky, third quarter growth may come out .

“If this is achieved, Nigeria will to a situation where we can say we are not into recession”. (NAN)