Economist expresses optimism GDP will grow by 3.05 % in 2018

An economist, Dr Biodun Adedipe on Thursday expressed optimism that the nation’s Gross Domestic Product (GDP) would grow by 3.05 per cent in 2018 with sustained ongoing government reforms.

Adedipe, founder B. Adedipe Associates Ltd ( management and financial consultants firm) said that GDP would grow by 2.8 per cent and 3.05 per cent in 2018.

Adedipe, in an economic outlook for 2018 at the the Lagos Business School Alumni Association (LBSAA) 2017 Alumni Day in Lagos, said that the nation’s exchange rate would grow between N305 and N372 per dollar in 2018.

He also predicted that the nation’s external reserves would be sustained at 42 billion dollars with sustained government policies, while crude oil price would be at 56 dollars per barrel.

Adedipe said that the inflation rate would remain at double digit at 13.45 per cent as well as the interest rate in line with present economic realities.

He said that 2018 would record much growth and development when compared to the past three years, urging government to identify growth opportunities and expropriate them.

“The year 2018 is going to be much brighter than 2015, 2016 and 2017,’’ Adedipe stated.

He said that government should ensure early passage and implementation of the 2018 proposed budget to achieve the desired growth.

Adedipe said that 2018 budget must not toe the line of the 2017 budget which implementation commenced in June.

According to him, government must desist from naira devaluation to sustain growth and recovery in 2018.

He said that currency devaluation would not help the nation’s economy due to fewer export items.

Adedipe stated that the recession experienced by the country was triggered by overdependence on hydrocation, government policy inconsistency and misalignment.

He added that overdependence on imports, low national productivity and mono-culture economy were the reasons for the recession.

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The economist said that government must accelerate non-oil revenue generation to stimulate growth, noting that the economy was still at a fragile state.

“Recovery is still fragile and if we don’t take it further, we will go into double-dip recession,’’ Adedipe said.

He said that double-dip recession means when GDP growth slides back to negative after a quarter or two of positive growth.

Adedipe added that a double-dip recession referred to a recession followed by a short-lived recovery, followed by another recession.

He also called for alignment of monetary, trade and fiscal policies, privatisation of selected public enterprise/assets and cost cutting measures to ensure economic growth.