GDP Drops as Recession Continues

Contrary to widespread expectations, a new report from the National Bureau of Statistics has shown that the recession rocking the country failed to end in the first three months of the year.

The NBS, in its Gross Domestic Product Report released on Tuesday, said the nation’s GDP contracted by –0.52 per cent (year-on-year) in real terms in the first quarter of 2017, representing the fifth consecutive quarter of contraction since Q1 2016.

It said, “This is 0.15 per cent higher than the rate recorded in the corresponding quarter of 2016 (revised to –0.67 per cent from –0.36 per cent) higher by 1.21 per cent points from rate recorded in the preceding quarter, (revised to –1.73 per cent from –1.30 per cent). Quarter on quarter, real GDP growth was –12.92 pet cent.

“During the quarter, aggregate GDP stood at N26.028tn in nominal terms, compared to N22.235tn in Q1 2016, resulting in a nominal GDP growth of 17.06 per cent. This growth was higher relative to growth recorded in Q1 2016 (11.39 per cent).”

That nation’s economy shrank by 1.5 per cent in 2016, the first full-year contraction in 25 years.

After several months of slowdown in growth, the economy shrank by 0.4 per cent in the first three months of 2016.

It shrank by 1.3 per cent in the fourth quarter of last year, after contracting 2.2 per cent in the third quarter, partly due to a decline in oil, the country’s biggest export.