Nigeria’s GDP growth turns negative after three-year slow recovery
After 13 consecutive quarters of positive growth, Nigeria’s economy shrank in the second quarter of this year as the Gross Domestic Product declined by 6.10 percent.
“Gross Domestic Product decreased by –6.10 percent (year-on-year) in real terms in the second quarter of 2020, ending the three-year trend of low but positive real growth rates recorded since the 2016/17 recession,” the National Bureau of Statistics said on Monday.
The NBS said the decline was largely attributable to significantly lower levels of both domestic and international economic activity during the quarter, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic.
It said the domestic efforts ranged from initial restrictions of human and vehicular movement implemented in only a few states to a nationwide curfew, bans on domestic and international travel, closure of schools and markets, etc., affecting both local and international trade.
The efforts, led by both the federal and state governments, evolved over the course of the quarter and persisted throughout, the statistics office added.
It said when compared with Q2 2019, which recorded a growth of 2.12 percent, the Q2 2020 growth rate indicated a drop of 8.22 percent, and a fall of 7.97 percent when compared to the first quarter of 2020 (1.87 percent).
“Consequently, for the first half of 2020, real GDP declined by –2.18 percent year on year, compared with 2.11 percent recorded in the first half of 2019. Quarter on quarter, real GDP decreased by –5.04 percent. Furthermore, only 13 activities recorded positive real growth compared to 30 in the preceding quarter,” it added.
