Nigeria Says Economy Fragile

Although Nigeria returned to positive growth in the second quarter of 2017 after slipping into a recession in 2016, the latest Real Household Consumption and Government Consumption Expenditures Report for 2017 further reaffirms the fragility of the economy, even as continued delay in the 2018 budget implementation raises concern for consumption growth, AllAfrica reported. According to the 2017 Nigerian Gross Domestic Product Report (Expenditure and Income Approach), released Monday by the National Bureau of Statistics, household final consumption in 2017 fell by -0.99% from 2016 in real terms, although it increased by 9.77% nominally. Notwithstanding that the decline in real household consumption was an improvement on the -5.71% recorded in 2016, high inflation coupled with weak purchasing power make outlook precarious. Indeed, weak household consumption growth indicates weak recovery of the domestic economy, while the nominal growth reflects the increase in 2017 prices. This component accounted for 58.93% of real GDP in 2017. Already, the Lagos Chamber of Commerce and Industry, had insisted that the economy remains fragile going by recurring challenges that continue to create concerns about prospects for sustainable poverty reduction.