By Nse Anthony-Uko
ABUJA, (Sundiata Post) — The Nigerian economy is out of recession, the National Bureau of Statistics announced Tuesday.
According to the NBS, in the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55% (year-on-year) in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016.
“This growth is 2.04% higher than the rate recorded in the corresponding quarter of 2016 ( –1.49%) and higher by 1.46% points from rate recorded in the preceding quarter, (revised to –0.91% from –0.52%). Quarter on quarter, real GDP growth was 3.23%,” the NBS said.
Quarter-on-quarter, real GDP growth was 3.23%.
The oil sector was estimated to have averaged at 1.84 million barrels per day, which is 0.15 million barrels higher than the daily average production recorded in the first quarter of June.
The non-oil sector, which was driven by agriculture, finance and insurance, electricity, gas, steam and air-conditioning supply and other services grew by 0.45% in real terms.
This is 0.83% higher than the rate recorded in second quarter 2016 and -0.28% lower than the rate recorded in first quarter of 2017.
Yemi Kale, statistician general, 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.
“Intuitively, 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.”