In economics, a recession is a
period of negative economic growth; a period of temporary economic decline
during which trade and industrial activity are reduced. While discussing
recession, macroeconomics, which is a branch of economic study that deals with
the performance, structure, and decision making of the economy, is brought into
focus.
In a period of recession,
macroeconomic indicators such as GDP (Gross Domestic Product), investment
spending, household income, business profits, and inflation fall, while
bankruptcies and unemployment rate rise. In addition, recession is generally
experienced when there is a widespread decline in spending, triggered by the
nation’s financial crisis and an adverse supply shock – i.e. when a sudden
change in price of a commodity affects the equilibrium price of goods and
services). With that said, it is however, sad to conclude that Nigeria is in
this state of economic tragedy.
While economists proffer
solutions for this state of economic growth, such as the government adopting
expansionary macroeconomic policies by increasing money supply and government
expenditure, and also through decreasing taxation, one will have to wonder if Nigeria
government is capable and ready to go through with them, given their proven incompetence in these economic
matters and the sad fact that Nigeria has a reputation for being one of the
countries in the world with bad governance.
However, Nigeria government can
choose to solve this problem of recession if it employs the services of master
brains and economists who can both theoretically and practically analyse the
economy situation of the nation. But I’m afraid they will be too busy with
sentimental politics that serious national matters as this are often treated
over political merriment and with absolute levity.