Effect of Recession on Sustainable Development in Nigeria
- July 17, 2020
- Posted by: RSIS
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VI, June 2020 | ISSN 2454–6186
Effect of Recession on Sustainable Development in Nigeria
Dr. Anekwe Rita Ifeoma
Nnamdi Azikiwe University, Anambra State, Nigeria
Abstract: – Recession is negative economic growth for two consecutive quarters. It is also a business cycle contraction which results in a general slowdown in economic activity. During recession the Macroeconomic indicators such as capacity utilization, business profits, GDP (gross domestic product), investment spending, inflation, and household income, fall, while unemployment rate bankruptcies and increase. Governments respond to recessions by adopting expansionary macroeconomic policies, such as increasing government spending, increasing money supply, and decreasing taxation. The study investigated the effect of recession on sustainable development in Nigeria. It also x-rayed the causes of recession in Nigeria which includes internal (endogenous) and external (exogenous) factors, these hamper the stability and sustainable development of the economy. The study, therefore recommended that Government should increase its spending in real activities during recession and also reduced its taxes for individuals and businesses to bring about stability and sustainability in the economy. Also to foster economic stability, ensure Economic growth, sustainable development and become a full partner in the global economy of the 21st century, Nigeria must embark on export diversification and take advantage of its huge stock of natural resources.
Keywords: Recession, Sustainable Development, Nigeria Economy,
I. INTRODUCTION
Recession is a business cycle contraction, and it refers to a general slowdown in economic activity for two consecutive quarters. Recession as a phase of an economic cycle at one point or the other has affected every economy (country) around the globe. Economic recession is a very serious symptom that indicates that the economy is diseased and requires vigorous economic measures to be taken for its faster recovery. In the phase of recession most macroeconomic fundamentals (variables) such unemployment, inflation, exchange rate, and economic growth gets worsen a life become unbearable for the majority of the population (the poor) indicating that if there is no appropriate policy responds from the government, the economy may slip further into depression (Shido-Ikwu, 2017).Recession is the period characterized by a decline in income, aggregate demand, prices of goods and services, investment, and employment in the country. These characteristics and many others are present in Nigeria except one, decline in prices of goods and services.
