“High turnover businesses can use loans as a hedge against inflation. Since the national currency value drops rapidly during such economic slowdown, when repaying such loans, what is being paid is actually a fraction of the amount borrowed in real terms-” Akin Monehin. A country experiences inflation when there is a continuous increase in the general price of goods and services.
National Bureau of Statistics reported a 22.95% food inflation rate (18.17% ‘general’ inflation) in March 2021. It also reported an unemployment rate of 33% and a negative economic growth rate. The trio is what economists refer to as stagflation (i.e., stagnant economy experiencing inflation).
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