Recession Worsens on N’Delta Crisis, Despite Agric Rebound
There seems to be no end in sight to Nigeria’s economic woes, as the third quarter real gross domestic product (GDP) growth data released monday by the National Bureau of Statistics (NBS) showed that the country sank deeper into recession, contracting by 2.26 per cent from -2.06 per cent in the second quarter of this year, and -0.36 per cent in the first quarter.
This represented a 0.18 per cent drop from the growth recorded in the preceding quarter and lower by 5.08 per cent relative to the corresponding quarter in 2015.
The contraction in GDP was largely driven by the militancy in the Niger Delta, which resulted in a drop in oil output during the third quarter to 1.63 million barrels per day (mbpd) and the oil sector’s contribution to GDP, notwithstanding the rebound recorded in the agriculture sector.
Nigeria depends on oil exports for 90 per cent of its foreign exchange earnings, reflecting the impact of a depressed oil sector on the economy.
The latest GDP growth data further confirmed the level of weakness in the economy, which has been hobbled by rising unemployment and job losses, declining capacity utilisation, and acute foreign exchange shortage.
According to the NBS, quarter-on-quarter (unadjusted for seasonality), real GDP, however, increased by 8.99 per cent.
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Avengers, una well done oh! Although I dare say the economic team have also not been very creative.