Nigeria Exits Recession With 0.11% GDP Growth
Africa's biggest economy grew by 0.11% as oil production fell to 1.56 barrels in fourth quarter.
Nigeria’s Economy surprisingly came out of a recession in the fourth quarter as growth in agriculture and telecommunications cancelled out a sudden drop in oil production after two consecutive quarters of negative growth which led to recession.
According to the Q4 GDP Report by National Bureau of Statistics, https://t.co/DkZZbddd1x?amp=1
“Nigeria’s Gross Domestic Product (GDP) grew by 0.11 percent (year-on-year) in real terms in the fourth quarter of 2020, representing the first positive quarterly growth in the last three quarters.”
“Though weak, the positive growth reflects the gradual return of economic activities following the easing of restricted movements and limited local and international commercial activities in the preceding quarters.
“As a result, while the Q4 2020 growth rate was lower than growth rate recorded the previous year by –2.44 percentage points, it was higher by 3.74 percentage points compared to Q3 2020.
“On a quarter on quarter basis, real GDP growth was 9.68 percent indicating a second positive consecutive quarter on quarter real growth rate in 2020 after two negative quarters.
“Overall, in 2020, the annual growth of real GDP was estimated at –1.92 percent, a decline of –4.20 percentage points when compared to the 2.27 percent recorded in 2019.”
While crude contributes less than 10% to the country’s GDP, it accounts for nearly all foreign-exchange earnings and half of the government revenue in the continent’s biggest producer of the commodity. In the fourth quarter, oil production fell to 1.56 million barrels a day from 1.67 million barrels in the previous three months.
The non-oil sector grew by 1.69 percent in Q4 2020, slower than the 2.26 percent recorded in the corresponding quarter of 2019, but better than the –2.51% growth rate recorded in Q3 2020.
For the full year of 2020 however, the non-oil sector grew –1.25 percent compared to 2.06 percent in 2019.
The non-oil economy contributed 94.13 percent to the nation’s GDP in the fourth quarter of 2020, higher than the share recorded in the fourth quarter of 2019 (92.68 percent) and the third quarter of 2020 (91.27 percent).
However, the non-oil sector expanded by 1.7% from a year earlier, the strongest rate in four quarters, with agriculture growing 3.4% and telecommunications increasing 17.6%.