FG: NBS figures show Nigeria's economy recovering
- Author: Leroy Wright Mar 01, 2017,
Mar 01, 2017, 4:10
"This contraction reflects a hard year for Nigeria, which included weaker inflation-induced consumption demand, an increase in pipeline vandalism, significantly reduced foreign reserves and a concomitantly weaker currency", NBS said in a report.
Nigeria's battered economy suffered a year-long contraction in 2016, official data showed Tuesday, but the oil sector showed signs of recovery, raising hopes for an end to recession. The reduction was largely due to vandalism in the Niger Delta region and as a result, the sector contracted by -13.65 per cent, a more significant decline than that in 2015 of -5.45 per cent which reduced the oil sectors share of real GDP to 8.42 per cent in 2016, compared to 9.61 per cent in 2015.
Gross domestic product rose 1.1 per cent from the September quarter, when it fell by a previously estimated 0.5 per cent, the Australian Bureau of Statistics said on Wednesday.
Australia has avoided a second consecutive quarter of negative economic growth, rising by 1.1 per cent in the December quarter and beating market expectations.
"In virtually all the sectors, the trend indicates an improvement in nominal and real terms".
"This decline was less severe than the decline recorded in the previous quarter, of -2.24%, but was nevertheless lower than the growth rate recorded in the final quarter of 2015, of 2.11%".
Oil production - Nigeria's economic mainstay - fell to 1.833 million barrels a day a year ago after 2.13 million bpd in 2015, it added, blaming militant attacks in the Niger Delta oil hub.
"The contribution of Agriculture to overall GDP in real terms was 25.49 per cent in the quarter under review".
Dipeolu said the Nigerian economy actually performed better overall a year ago as the growth rate was higher with a contraction at -1.5 per cent than the -1.8 per cent predicted by the International Monetary Fund.
The services sector, which accounted for 53.55% of GDP in 2016, experienced a decline in growth by -0.82% over the year as compared to a growth of 4.78% in 2015.
"Quarter on quarter, real GDP increased by 4.09%, which partly reflects seasonal factors as well as a rise in the general price level".