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LequteMan
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Dr Ousmane Dore, the Country Director, African Development Bank (AfDB), has predicted that the Nigerian economy will grow by six per cent in 2015 in spite of the oil price shock.
Dore told the News Agency of Nigeria (NAN) on Monday in Abuja that the economic prospect of the country was still good ,even though it was going to be affected by the oil price shock.
``The country’s prospect is going to be affected downward by this major oil price shock and we still expect growth to be in the range of 5.5 to 6 per cent this year notwithstanding the shock.
``How is the economy going to be affected by this? It is clearly depends on how the government is going to react to this shock. The first thing is to see if this shock or decline is going to be transitory or permanent.
``To the extent that they are permanent, you need to do a major adjustment to the budget because as you know, the budget is based on benchmark price for oil.
``As you know today, the price is even below the 65 dollars per barrel that the government has budgeted, it means that the government would require a tough adjustment to counter the impact of the decline on its revenue.”
Dore said that should the government failed to react positively to the oil price shock, the situation might lead to large borrowing since the country’s economy was largely dependent on oil export.
#Nigeria #AfDB
Dore told the News Agency of Nigeria (NAN) on Monday in Abuja that the economic prospect of the country was still good ,even though it was going to be affected by the oil price shock.
``The country’s prospect is going to be affected downward by this major oil price shock and we still expect growth to be in the range of 5.5 to 6 per cent this year notwithstanding the shock.
``How is the economy going to be affected by this? It is clearly depends on how the government is going to react to this shock. The first thing is to see if this shock or decline is going to be transitory or permanent.
``To the extent that they are permanent, you need to do a major adjustment to the budget because as you know, the budget is based on benchmark price for oil.
``As you know today, the price is even below the 65 dollars per barrel that the government has budgeted, it means that the government would require a tough adjustment to counter the impact of the decline on its revenue.”
Dore said that should the government failed to react positively to the oil price shock, the situation might lead to large borrowing since the country’s economy was largely dependent on oil export.
#Nigeria #AfDB