Group Chief Economist and Managing Director of Afreximbank, Dr Yemi Kale, has explained to Nigerians what economic stability stands for in economic context.
Reacting to Okonjo Iweala\u2019s comments on his X handle on Saturday, Kale clarified why economic assessments might seem disconnected from the reality of citizens facing high costs and economic challenges.\n<\/p>\n
This came after WTO Director-General Ngozi Okonjo-Iweala described Nigeria\u2019s economy as \u201cnow stable\u201d following her meeting with President Bola Tinubu. Many Nigerians questioned this claim, citing rising costs for food, housing, transportation, and healthcare.\n<\/p>\n
He emphasised that \u201ceconomic stability\u201d is a technical term that doesn\u2019t guarantee immediate relief for households.\n<\/p>\n
Kale defines economic stability as a condition where key macroeconomic indicators\u2014like inflation, exchange rates, and GDP growth\u2014no longer fluctuate sharply.\n<\/p>\n
He said that if inflation falls from 25% to 12% and stays there, the economy is deemed \u201cstable,\u201d even if prices remain high compared to previous years, stressing that stability indicates predictability and a reduced risk of disruptions, instilling confidence in businesses, investors, and consumers to make long-term plans.<\/p>\n
Kale, however, pointed out that this does not necessarily mean that citizens are free from financial hardships.\n<\/p>\n
\u201dI try to stay away from unnecessary debates, but let me offer my view from a purely technical & economic perspective, for education purposes only, to recent debates that were unnecessary.,\n<\/p>\n
\u201dWhen economists say \u201can economy is now stable\u201d, they usually mean that the 1\/10
economy has reached a point where it is no longer experiencing major fluctuations\/ disruptions. In practical terms, it suggests Macroeconomic Indicators are steady,;; he said.\n<\/p>\n
Kale noted that the difference between stability and improved living standards lies in the timing and distribution of benefits. He explained that stability typically occurs after a crisis, like a currency crash or hyperinflation, signaling that the worst has ended.<\/p>\n","protected":false},"excerpt":{"rendered":"Group Chief Economist and Managing Director of Afreximbank, Dr Yemi Kale, has explained to Nigerians what economic stability…\n","protected":false},"author":2,"featured_media":74265,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,35204,56,54,55,38019],"class_list":{"0":"post-74264","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-okonjo-iweala","11":"tag-uk","12":"tag-united-kingdom","13":"tag-unitedkingdom","14":"tag-yemi-kale"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/74264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=74264"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/74264\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/74265"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=74264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=74264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=74264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}