COVID-19 impacts threaten global economy

COVID-19 impacts threaten global economy
Photo by Ask Nigeria- Ask Nigeria

Effects of the war in Ukraine & COVID-19 aftermath might cause global recession.

At an event organized by the Department of Economics, University of Ibadan, Economists voiced concerns over increasing inflation and the likelihood of a recession confronting the global economy. They emphasized on the need to come up with proactive measures, as they are sacrosanct to addressing economic shocks. The stakeholders who raised concerns about the threat of recession include the Chief Economic Adviser to the President, Professor Doyin Salami, the World Bank, the Central Bank of Nigeria and the University of Ibadan.

The rising inflation is an emerging consequence of the COVID-19 pandemic and the fallout from the Russia-Ukraine war on the Nigerian economy. In the previous week, a report revealed that the Eurozone is slipping into recession with surveys portraying a deepening cost of living crisis and gloomy outlook. It was also stressed that Nigeria’s Social Accounting Matrix (SAM), a broad and economy-wide database which is responsible for recording every transaction between the economic agents has become obsolete.

Nigeria’s domestic challenges are being worsened by the Russia-Ukraine war.

Assembled at the Stakeholders Dissemination Workshop on the Fiscal Impacts of COVID-19 Pandemic and Lessons for the Future in Abuja, Prof. Salami stated that the trillions of dollars that has been spent by governments is the cause bringing about a rapid inflationary pressure and economic lockdown. In his words, it is also as a result of different reactions to shock from the pandemic and the war in Ukraine. For Nigeria, its domestic challenges have been exacerbated due to the Russia-Ukraine war and the COVID-19 pandemic, fostering current economic woes affecting the country.

It is now apparent that there is a need of rebalancing by Central Bank’s and fiscal authorities to the responses to COVID-19, because the world now prioritizes inflation with some parts of the world’s economy already in recession. However, with support from the Partnership for Economic Policy (PEP) based in Nairobi Kenya, a team of economic experts – Lulit Mitik Beyene, Adeola Adenikinju, Bernard Decaluwe, Oluwasola Omoju, and Abiola Akande – recently finished a study on the ‘Impacts and Adjustment Responses to Economic Recovery from COVID-19 Pandemic.

Domestic resource mobilization will maintain the pace of gov expenditure.

Adenikinju, head of the Department of Economics at the University of Ibadan, referred to the 2006 accounting matrix of Nigeria as obsolete due to changes in the economy. Amidst relating the rising inflation in the world to the direct spending in a bid to lessen the impacts of the COVID-19 pandemic, the economic expert further stated that there is a possibility that the pandemic would have disproportionate impacts on informal non-agricultural sectors where women are excessively represented.

The economist added that the steady and effective rollout of the COVID-19 vaccine is significantly needed for the reduction of the expanding gender gap in Nigeria. Saying that if it was effectively done, women and girls could get relieved by the vaccine from disproportionately bearing the care burden and as a result, increase their mobility. This is because of the essentiality of domestic resource mobilization if Nigeria is to keep treading at its current pace of government expenditure.

Inflation rates have increased dramatically since December.

Nigeria’s inflation rate from January to July 2022, has risen by over 400 basis points from 15.63 percent which was recorded in December 2021 to 19.64 percent. Dr. Samer Matta, Senior Economist for Nigeria at the World bank, also affirmed that more than 100 million Nigerians have been driven into poverty while millions of students are out of school. Having said that, he emphasized on the importance of planning a futuristic education policy.


Related Link

World Bank: Website

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Ask Nigeria
13 days ago

COVID-19 impacts threaten global economy – Effects of the war in Ukraine & COVID-19 aftermath might cause global recession. – Express your point of view.

SarahDiv
Member
11 days ago

We were already in recession long before Covid-19 and the Ukraine -Russian war.Our government should stop blaming others for their failure. It is expected that this should be the time that our country should have made more money through our crude oil. We should have bad leaders who like embezzling and mismanaging funds.

Adeolastan
Member
12 days ago

The bad effect of covid-19 pandemic will lingering for a long time both in Nigeria and at world at large,no human being on health prepare for the pandemic and lots of financial issues are on ground before it came and it wil clear off gradually.

Ultra0711
Member
12 days ago

All these unanticipated incident has make our economy situation hard which is becoming unbearable. Government needs to to act swiftly on these issues.

Kazeem1
Member
12 days ago

In other words, if all went according to plan, women and girls would be freed from the weight of caregiving that falls disproportionately on their shoulders and would, as a direct result, have more freedom of movement.

Chibuzor
Member
12 days ago

This is due to the fact that the mobilisation of Nigeria’s domestic resources is absolutely necessary if the country’s government spending is to continue at its current rate.

Christiana
Member
12 days ago

This new threat from Covid 19 and the war in Ukraine might lead to the total downfall of Nigeria’s economy , the government should deliberate on means to ensure that this doesn’t happen

Tolaniiii
Member
12 days ago

Nigeria is already going through a phase of hardship , if proper measures are not put in place the Covid 19 and eat in imagine will make it worse and unbearable

Bola12
Member
12 days ago

The government should come up with proactive measures to ensure that this Covid 19 and war in Ukraine doesn’t have a significant impact on our Economy

Adesanyaj72
Member
12 days ago

As a result of the high concentration of women in these non-agricultural informal sectors, the pandemic may have disproportionate effects on them.

Taiwoo
Member
12 days ago

In the middle of attributing the rise in inflation around the world to increases in direct expenditure in an effort to mitigate the effects of the COVID-19 epidemic,

Hassan Isa
Member
12 days ago

The Eurozone is teetering on the brink of recession, with surveys depicting a deepening cost of living crisis and bleak outlook, and this is a highly concerning development.

Godsewill Ifeanyi
Member
12 days ago

The impact of the COVID-19 epidemic and the consequences from the war between Russia and Ukraine on the Nigerian economy has led to an increase in inflation, which is an emergent consequence.

Abusi
Member
12 days ago

We all know the impact in which this virus has played in the economy of the whole globe. The effects is still prevalent in the society. I just hope everything dies down a little bit. The economy has really suffered. The people are the ones bearing the brunt of it all.

Iyanu12345ogg
Member
12 days ago

The country suffered during the covid19 pandemic…even effects of the war between Ukraine and Russia now tells as a result of insensitive, negligence mismanagement from the govt. The next candidate should just wise up jare.

Nwachukwu Kingsley
Member
12 days ago

We need to come up with proactive measures because they are absolutely necessary for addressing economic shocks; additionally, we need to be ready to deal with it when it happens.

Tonerol10
Member
12 days ago

The country has been suffering already before Covid-19 and Ukraine and Russia war. A lot of problems in Nigeria. Hardship is coming due to the war between Ukraine and Russia… Government wey no get plan B Solution

Haykaylyon26
Member
12 days ago

The pandemic of covid-19 as already cause our country a lot but now the war between the both country is till adding more to what we are yet to resolve

jdpumping
Member
12 days ago

Wow Nigeria already has his own issues at hand the suffering by the masses is much and aftermath of the covid pandemic now the war between Russia and Ukraine adding its own…With this our non existent government….

theApr
Member
12 days ago

Since the globe now prioritizes inflation and some regions of the global economy are already in recession, it is clear that the reactions to COVID-19 by central banks and fiscal authorities need to be rebalanced.
Coming up with proactive measures is really essential at this point

Remi1
Member
12 days ago

It is now apparent that there is a need of rebalancing by Central Bank’s and fiscal authorities to the responses to COVID-19, because the world now prioritizes inflation with some parts of the world’s economy already in recession.

DimOla
Member
13 days ago

Honestly, Nigeria has been in recession long before the Russia-Ukraine war and the COVID-19 and we still in it. These are the results of government mismanagement and insensitive to the need of the her citizenry.