Economy grows by 2.5 per cent, stops technical recession

Mixed reactions trail “out of recession” verdict by NBS

The National Bureau of Statistics (NBS) on Tuesday released statistics on the performance of the Nigerian economy in the second the second quarter of the year showing that Nigeria is officially out of recession.

The finance industry was the second largest contributor to GDP growth in the second quarter, growing by 2.5 percent on the back of higher activity in financial intermediation and auxiliary activities.

This growth was higher relative to growth recorded in Q2 2016, 3.01 percent.

Stats SA Statistician-general Pali Lehohle announced that South Africa has broken out of technical recession.

"Growth across the economy was pretty soft, but the big surprise for me is the weakness of the oil sector", Ashbourne said.

In particular, improvement in the non-oil sector was driven principally by strong growth in agriculture and solid minerals sector, and reversal in the previous contraction of the manufacturing and construction sector.

A statement issued in Abuja by the Senate Spokesperson, Senator Sabi Abdullahi, said it was commendable that the economy grew by 0.55 per cent in the second quarter of 2017 after five consecutive quarters of contraction. It also declined in the first quarter of this year, due to lower oil revenues and a shortage of hard currency.

Q2 GDP Growth up at 0.55%.

"The growth is not what planners and decision makers would like to see", he said.

On the expenditure side, household final consumption grew 4.7 percent over the quarter, while gross fixed capital formation decreased by 2.6 percent.

In South Africa, the continent's most-industrialised economy, low demand for its commodity exports and political turmoil have weighed on output.

"If there are no attacks on oil facilities and production is increased and Nigeria earns more money, then the economy will stabilise", Rewane said.

In response to a question that the exit from recession was a political gimmick, the NBS boss said GDP report which showed that Nigeria exited recession in the second quarter was not politically motivated.

On his part, Mr Abdulrauf Aliyu, a development economist and public analyst, said government must now focus on improving the quality of life of Nigerians.

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