Omololu Ogunmade in Abuja and Obinna Chima in Lagos
The International Monetary Fund (IMF) and the Central Bank of Nigeria Governor Godwin Emefiele on Tuesday gave conflicting prognoses of the Nigerian economy, with the fund forecasting that the Nigeria economy was likely to contract by 1.8 per cent this year, warning that it was heading towards recession.
Emefiele, on the other hand, during a closed-door briefing with the Senate, informed the upper legislative chamber that the economy was suffering from stagflation.
A recession is defined as a significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade.
Economic stagflation refers to a period of little or no growth in an economy (of less than 2 or 3 per cent annually) and relatively high unemployment – economic stagnation – accompanied by rising prices, or inflation, or inflation and a decline in GDP.