February 25, 2021

There Will Be Mass Economic Crisis -CBN Governor:

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Coronavirus Pandemic Would Lead To Massive Economic Crisis

The Monetary Policy Committee of the Central Bank of Nigeria on Tuesday said the outbreak of the coronavirus pandemic would lead to massive economic crisis capable of throwing many countries into recession.

The committee said the COVID-19 pandemic would not only result in health crises, but also massive economic crises that would force even leading industrialised countries into recession.

The CBN Governor, Mr Godwin Emefiele, has announced the position of the committee at the end of its two-day meeting held at the apex bank’s headquarters in Abuja.

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Emefiele said the MPC underscored the COVID-19 pandemic as a public health crisis which would continue to undermine any monetary or fiscal stimulus unless appropriate measures were taken to trace, test, isolate and treat infected persons in order to curtail the spread.

While calling for a significant reduction in migration across the country, the governor said the committee urged the Federal Government to take the necessary steps to safeguard the population through close monitoring and emergency measures to identify and care for infected persons in the country.

He said the overall medium-term outlook for the global economy remained uncertain with increased deterioration in financial market conditions and weak global output growth.

The governor stated that, some of the major headwinds to the current projection for global growth included disruption to the global supply chain arising from the COVID-19 pandemic; oil price downturn as a result of subdued demand and weakness in major financial markets.

Others are rising corporate debt in the advanced economies and public debt in some emerging markets and developing economies as well as broad uncertainties leading to adverse shocks to foreign investment flows.

He said, “The committee reviewed the prevailing adverse conditions in the global economy such as the COVID-19 pandemic and the oil price shock as well as the likelihood of continued oil supply glut into the near future, focusing on the impact of these headwinds on the Nigerian economy.

“The committee observed that not only will the COVID-19 pandemic result in health crises, it will also result in massive economic crises that will force many countries into recession, including the leading industrialised countries.”

Image: CBN File

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