Audio By Carbonatix
Managers of the economy should be wary of the potential negative economic implications of high growth rate.
That is the warning from renowned economist Dr Joe Abbey who says high growth rate, especially if it is not well-managed, could negatively affect the economy.
The revised GDP estimate for 2011 released by the statistical services indicates the economy grew by 14.4 percent.
This is the highest growth the country has witnessed in a long while. But Dr Abbey, speaking to JOY BUSINESS, said high growth rates come with some challenges and cautioned that care must be taken.
He said: “If you push things very hard you will see growth, yes, you’ll see more vehicles moving things on our bad roads and so on but the result will also be that you are overheating the economy.”
“And therefore you also find that you get more growth in production but you also you also get more inflation, cost will also escalate…and that is why you must keep on investing and relieving the infrastructural deficiencies in an economy. Other than that the growth is not sustainable.”
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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