In the fourth quarter of 2016, Nigeria’s Gross Domestic Product, GDP, contracted by 1.73 per cent in real terms, the National Bureau of Statistics, NBS, said on Tuesday.
In a report titled National Gross and Domestic Product Report (Expenditure and Income Approach) for the third and fourth quarters of 2016, the NBS also said year on year growth in GDP declined by 2.34 per cent in the third quarter of the same year.
This, the NBS said, resulted in continuation of the negative growth trend from the first half of 2016.
Further analysis of the report showed that both household consumption and government consumption expenditures contributed to the fall in the third and fourth quarters.
The NBS, however, noted that a strong recovery in growth in net exports, particularly in the fourth quarter, helped to stem the decline.
Similarly, the National Disposable Income recorded a strong growth in comparison to the GDP in the second half of 2016 in real terms.
“This is partly as a result of increases in ‘other net transfers from the rest of the world’,” the NBS said.
Year on year growth in domestic Compensation of Employees declined in real terms, the report said, noting that operating surplus also declined in the third and fourth quarters but grew overall in real terms in 2016.
The Gross Domestic Product can be described as the value of all goods and services available for final use and export.
Nigerian economy slipped into recession in 2016 after contracting for two consecutive quarters.
On September 5, the NBS announced that the economy had exited recession.
According to the NBS, in the second quarter of 2017, the GDP grew by 0.55 per cent in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016.
“This growth is 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 (–1.49 per cent) and higher by 1.46 per cent points from rate recorded in the preceding quarter, (revised to –0.91 per cent from –0.52 per cent),” the NBS said.
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