The National Bureau of Statistics (NBS) said Nigeria has come out of its worst economic recession in more than two decades, notching up growth of 0.55 per cent in the second quarter of 2017. In its report released on Tuesday, it said “In the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55 per cent year-on-year in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since first quarter of 2016.
“This growth is 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 ( –1.49%) and higher by 1.46 per cent from rate recorded in the preceding quarter, (revised to –0.91% from –0.52%). Quarter on quarter, real GDP growth was 3.23 per cent. During the quarter, aggregate GDP stood at N26,986,005.20million in nominal terms, compared to N23,547,466.91 million in Q2 2016, resulting in a Nominal GDP growth of 14.60%. This is confirmed by the CBN Purchasing managers’ index which showed expansion in several sectors of the economy.
NBS report collaborate the Central Bank of Nigeria’s recent purchasing managers’ index which measured the pulse of the economy and reported that the economy is expanding. According to the CBN “The Manufacturing PMI stood at 53.6 index points in August 2017, indicating expansion in the manufacturing sector for the fifth consecutive month. Twelve of the 16 sub-sectors reported growth in the review month in the following order: computer & electronic products; appliances and components; chemical & pharmaceutical products; textile, apparel, leather and footwear; electrical equipment; printing & related support activities; paper products; nonmetallic mineral products; food, beverage & tobacco products; furniture & related products; cement and plastics & rubber products. The remaining 4 sub-sectors contracted in the order: transportation equipment; primary metal; petroleum & coal products and fabricated metal products.
“The production level index for manufacturing sector grew for the sixth consecutive month in August 2017. At 57.4 points, the index indicated an increase in production at a slower rate, when compared to its level in the preceding month. Eleven of the 16 manufacturing sub-sectors recorded increase in production level, 1 remained unchanged and the other 4 declined during the review month. At 52.3 points, the new orders index grew for the fifth consecutive month. Six sub-sectors reported growth, 1 remained unchanged while 9 contracted in the review month”.
However the NBS data showed that the economic recovery was driven by improved performance of oil, agriculture, manufacturing and trade sectors of the economy. It said that since the first quarter of 2016, the Nigerian economy had contracted for five consecutive quarters. According to the report, Nigeria slipped into recession for the first time in more than two decades in August 2016.
