71880
Nigeria Exits Recession But Recovery Weak
World Economy

Nigeria Exits Recession But Recovery Weak

Nigeria’s economy emerged from recession in the second quarter, expanding 0.55% year-on-year, the statistics office said on Tuesday, as economists expressed concern at the sluggish recovery.
Africa’s largest economy shrank by 1.5% in 2016 for its first annual contraction in 25 years. It also declined in the first quarter of this year, due to lower revenues from oil—its dominant export—and a shortage of hard currency, Reuters reported.
Crude production slumped last year as militants attacked oil facilities. It recovered in the second quarter to 1.84 million barrels per day, the statistics office said on its Twitter account, after the government engaged in negotiations to address communities’ grievances in its crude-producing heartlands in the Niger Delta.
But that recovery failed to drive a strong rebound in overall economic growth. “This is not at all a robust GDP print, it still falls far short of the growth rates the Nigerian economy should be achieving,” said Razia Khan, chief economist for Africa at Standard Chartered.
“While improved oil production has driven some of the recovery, the output numbers provided by the National Bureau of Statistics suggest that further upside from this source might be limited.”
This growth, according to the NBS is 2.04% higher than the rate recorded in the corresponding quarter of 2016 (–1.49%) and higher by 1.46% points from rate recorded in the preceding quarter, (revised to –0.91% from –0.52%).
It said quarter on quarter, real GDP growth was 3.23%. During the quarter, aggregate GDP stood at Naira 26,986,005.20 million ($75,065) in nominal terms, compared to N23,547,466.91 million in Q2 2016, resulting in a nominal GDP growth of 14.60 per cent.
The statistics office attributes the economic recovery to the performance of four main economic activities comprising oil, agriculture, manufacturing and trade.
Oil GDP recovered significantly from -11.63% in Q2 2016 to 1.64% in Q2 2017, while non-oil GDP grew marginally at 0.45%. Agriculture grew 3.01% in Q2 2017, from 3.39% in Q1 2017.
Manufacturing retained its positive growth for the second consecutive quarter in Q2 2017, growing at 0.64%, while trade which has a dominant share of GDP remained negative at -1.62%.
Financial institutions saw an 11.78% jump in Q2 2017, compared to 0.60% in Q1 2017 and -13.24% in Q2 2016. While the industry sector grew positively by 1.45% in Q2 2017, after nine consecutive quarters of negative growth since Q4 2014.

Short URL : https://goo.gl/vVszMj
  1. https://goo.gl/hMM7gZ
  • https://goo.gl/Amdb7L
  • https://goo.gl/5NWmvj
  • https://goo.gl/QrRVqz
  • https://goo.gl/NQ91yW

You can also read ...

Cyber threats are ever-evolving.
The White House released a report that found that the economic...
Global Investors Target Zimbabwe Energy Sector
Zimbabwe has become a magnet for billionaire global firms such...
BSP said the planned RRR cuts are part of the bank’s financial market reforms.
The Bangko Sentral ng Pilipinas said it was reducing banks’...
FAO regional representative Julio Berdegue (R), and the deputy regional representative Eve Crowley.
Identifying territories where rural poverty is most entrenched...
Asean Labor Flows Hit a Wall
Tighter restrictions on foreign labor in Malaysia and Thailand...
The country’s GDP grew by 3.2% in 2017 but will  edge down in the coming years.
A report by the International Monetary Fund showed Sunday that...
Lagarde Backs Creation of European Monetary Fund
International Monetary Fund chief Christine Lagarde has no...
Baby-boomers will start turning 75 or older in 2022, which is expected to trigger a surge in health care and nursing care costs.
Amid stalling inflation and ballooning government spending,...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus