The Nigerian economy has finally exited the recession, as data on the country’s gross domestic product (GDP) growth rate grew at 0.55 per cent in the second quarter (Q2) of 2017.
The National Bureau of Statistics (NBS) stated this in its Q2 2017 GDP results.
The Q2 2017 growth rate of 0.55 per cent (year-on-year) was 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 (-1.49%) and higher by 1.46 per cent points from rate recorded in the preceding quarter, which was revised to –0.91% from –0.52% due to revisions to crude output for March 2017.
According to the results, Nigeria’s economic recovery was driven principally by the performance of four main economic activities comprising oil, agriculture, manufacturing and trade.
The results revealed that Oil GDP recovered significantly from -11.63 per cent in Q2 2016 and -15.40 per cent in Q1 2017 to 1.64 per cent in Q2 2017.
Agriculture grew 3.01 per cent in Q2 2017, from 3.39 per cent in Q1 2017.
Manufacturing retained its positive growth for the second consecutive quarter in Q2 2017, growing at 0.64 percent, while trade which has a dominant share of GDP remained negative at -1.62 per cent.
Electricity and gas and financial institutions sectors also recorded strong growths OF 35.5 per cent.
Financial institutions saw an 11.78 per cent jump in Q2 2017, compared to 0.60 per cent in Q1 2017 and -13.24 per cent in Q2 2016.
The industry sector grew positively by 1.45 per cent in Q2 2017, after nine consecutive quarters of negative growth since Q4 2014.
Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane while reacting to the GDP figures said it is not yet uhuru for the economy as the ‘comng out will be slow and stressful.
“The reality of the GDP figure is that oil production geared up within the period”, he said while featuring on Channels Television, Business morning on Tuesday.