Nigeria is finally out of recession the National Bureau of Statistics (NBS) announces. A data on the country’s Gross Domestic Product released today shows that the economy grew at 0.55 percent in the second quarter of 2017.
This is 2.04 percent higher than the rate recorded in the corresponding quarter of 2016 and higher by 1.46 percent points from rate recorded in the preceding quarter.
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 percent in Q2 2016 to 1.64 percent in Q2 2017, while Non-oil GDP grew marginally at 0.45 percent.
Agriculture grew 3.01 percent in Q2 2017, from 3.39 percent in Q1 2017.
Manufacturing retained its positive growth for the second consecutive quarter in Q2 2017, growing at 0.64 percent, while trade which has a dominant share of GDP remained negative at -1.62 per cent.
Electricity and gas and financial institutions sectors also recorded strong growths OF 35.5 percent.
Financial institutions saw an 11.78 percent jump in Q2 2017, compared to 0.60 percent in Q1 2017 and -13.24 percent in Q2 2016.
The industry sector grew positively by 1.45 percent in Q2 2017, after nine consecutive quarters of negative growth since Q4 2014.
The statistician general, Yemi Kale, had told Bloomberg in an interview that there was a likelihood that the economy exited recession in June 2017 but he was not sure because all the numbers had not been collated.
“Intutively, we might be getting out of recession in the second quarter but I can’t say until all the numbers are in.”
“If it doesn’t happen in the second quarter, it will be a much reduced negative and it will definitely happen in the third quarter unless we have a new round of shocks in the later weeks,” he had said.
It would be recalled that the NBS had last year announced that the nation was in her worse recession in 29-years.
Last week it also announced that the annual inflation in the country has slowed down for a sixth month in July, easing to 16.05 percent.
”The inflation report for July 2017 reveals that headline inflation has again reduced to 16.05 percent (year-on-year) in July 2017, compared to 16.10 percent in June 2016.
“This makes it the sixth consecutive decline in the rate of headline year on year inflation since January 2017
“On a month-on-month basis, the headline index increased by 1.21 percent in July 2017, 0.37 percent points lower from the rate of 1.58 per cent recorded in June.”
The report also revealed that the rise in food inflation was the biggest in eight years.“The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables,” the report said.
“The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables,” the report said.