The National Bureau of Statistics on Wednesday released the much awaited Gross Domestic Product figures for the second quarter of 2016 with the GDP growth rate sliding further from -0.36 per cent in the first quarter to -2.06 per cent year on year.
The negative growth rate recorded in the second quarter of this year is a confirmation of the predictions by the Federal Government and economists that the country was heading into recession.
A recession is defined as a significant decline in activities across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale retail trade.
The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s GDP.
In the GDP report released by the NBS, the bureau said, “In the second quarter of 2016, the nation’s Gross Domestic Product declined by -2.06 per cent (year-on- year) in real terms.
“This was lower by 1.70 per cent points from the growth rate of –0.36 per cent recorded in the preceding quarter, and also lower by 4.41 per cent points from the growth rate of 2.35 per cent recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP increased by 0.82 per cent.”
With the continued increase in prices of goods and services across Nigeria occasioned by the slump of the naira against the dollar, the end of this recession seems well into the future.
As it is now, the agenda for many Nigerians is survival. Another months of this economic environment will be a harsh road.
Here are five ways to survive the current hard times in the country:
1. Find new incomes:
During this period of dark economic clouds, multiple sources of incomes are wonderful things to have. As most Nigerians live up to one source of income, money from occasional work and opportunities act as extra fund to meet our needs. Whether it’s selling stuff online or providing services during off days from your regular job, a few hundred nairas from other activities actually amounts to a big win for us and our families.
2. Keep your job
In the early 70s, many people in Nigerian cities could walk out of a job and straight into another. Long gone are the days you could get a job simply by driving into a different corporate car park and go knocking.
With the current hard times in Nigeria, staying employed is now more important than ever. The securely employed would find life bearable during this tough times than those out of work.
Meanwhile, those thinking about retiring from work should think about putting a bit more aside before taking the decision. This is because if the hard times last more than we expect, retirement fund would shrink a lot. It might be worth at least waiting until you think the economic crisis is over before cutting the cord to your work income.
3. Control your finances
Experiences during the great depression in Europe and America have shown that conserving money during hard times is often more important than trying to make more. If you have a hole in your financial bucket, it won’t matter how much money you pour into it. So if the recession in the Nigerian economy is bothering you, start first by fixing your own finances before worrying about President Buhari fixing the Nigerian economy at the federal level.
4. Hedge your cash
According to American business magnate, Warren Buffett, cash is a dangerous thing to hold. This is because it is a worthless paper that can lose its worth in a matter of how the future pan out.
In any event, try to find a way to turn your cash into objects that can give you income. For instance, buy a land and rent it out for those into agriculture.
Anything that acts as a way of protecting your capital from inflation while bringing in cash flow is the kind of thing you need to search out. This is because during inflation, like the one we find ourselves, cash savings does not worth it.
5. Stay positive
It is hard times out there but I can tell you someone somewhere is getting very rich. They aren’t doing that by idling away or planning for the end of the world. They might be lucky, sure, but luck favours the brave.
In a recession, even during the worst depression, you have to be at your best, with a smile on your face, looking to the future to survive. You may then do very well indeed. Those who feel terrified by the current recession, are the very people most likely to be feel the hardest hit of the hard times.
However bad this situation gets, there will be plenty of good times for those with a positive mental attitude, a focus on what’s important and an instinct for hard work.
While there appears no end to this hard times, it doesn’t have to define us. It’s those who fail to be hardworking and capitalize on the opportunities out there during this economic recession who will be in trouble.
