Nigeria Records First Strong GDP Growth After Recession
For the first time since Nigeria’s exit from recession, the Gross Domestic Product (GDP) has recorded growth.
According to a report by Nigerian Bureau of Statistics (NBS), driven by the non-oil sector, GDP which grew by 2.05 per cent in the second quarters of 2018 represented the strongest growth in non-oil GDP since the fourth quarter of 2015.
“Non-oil GDP growth was -0.18% in Q1 2016, -0.38% in Q2 2016, 0.03% in Q3 2016, -0.33% in Q4 2016, 0.72% in Q1 2017, 0.45% in Q2 2017, -0.76% in Q3 2017, 1.45% in Q4 2017and 0.76% Q1 2018.
“GDP grew strongly in Q2 2018 by 2.05%. Non-oil growth was driven by transportation which grew by 21.76% supported by growth in construction which grew by 7.66% and electricity which grew by 7.59%.
“Other non-oil sectors that drove growth in Q2 2018 include telecommunication which grew by 11.51%, water supply and sewage which grew by 11.98% and broadcasting which grew by 21.92%.’’
The non-oil sector performance was however constrained by agriculture that grew by 1.3% compared to 3.00% in Q1 2018 and 3.01% in Q2 2017.
Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95% compared to 14.77% in Q1 2018 and 3.53% in Q2 2017
Services GDP recorded its best performance in 9 quarters, growing by 2.12% in Q2 2018 compared to -0.47% in Q1 2018 and -0.85% in Q2 2017.
Statistician General and Chief Executive Officer of National Bureau of Statistics (NBS), Dr. Yemi Kale, last week denied reports quoting that Nigerian economy had yet to recover from recession.
Kale categorically said that Nigeria was out of recession and that at no time did he suggest otherwise.
His denial was contained in a statement released on Monday by the Bureau’s Public Relations Officer, Mr. J. Ichedi.
NBS said that it reported in the second quarter of 2017 that the country was out of recession as the country recorded the first positive growth in Gross Domestic Product (GDP) following five quarters of contradiction.
He said that economic growth as measured by GDP has remained positive ever since with 0.72% in second quarter of 2017; 1.17% in third quarter of 2017; 2.11% in fourth quarter; and 1.95% in first quarter of 2018.
Ichedi said that NBS had continued to explain that there would be economic recovery after the recession.
The economic after recession moves gradually towards sustainable strong growth which “is the stage we are now’’.
This is the position which the CEO told Arise Television in an interview, he said.
The CEO, he said, told the television that the economy was in the second state of recovery and heading toward sustainable growth which is the last stage’’.
“This should not be wrongly interpreted as the economy is still in recession,’’ Ichedi said.
According to a report by a local newspaper on Monday, the Statistician-General was quoted to have lamented the performance of the nation’s economy in the second quarter of the year.
