The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday warned that the economy might relapse into protracted recession if bold monetary and fiscal policies were not activated immediately to sustain the programmes of the Federal Government.
The committee stated that available forecasts of key macroeconomic indicators pointed to a fragile economic recovery in the second quarter of the year.
Data from the National Bureau of Statistics showed that the contraction in the economy moderated to 0.52 per cent in the first quarter.
The MPC identified the downside risks to economic outlook to include weak financial intermediation, poorly targeted fiscal stimulus and absence of structural programme implementation.
The CBN Governor, Mr. Godwin Emefiele, while reading the communique after the end of the committee’s two-day meeting, called for more fiscal measures to stimulate the economy.
He said there was a need for improvements in economy-wide non-oil exports, especially agriculture, manufacturing, services and light industries.
He also said the expected fiscal stimulus, non-oil federal receipts and other measures that were expected to drive the growth impetus for the rest of the year must be pursued relentlessly.
SOURCE: http://punchng.com/nigeria-needs-strong-fiscal-monetary-policies-to-exit-recession-cbn/
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