GDP figures show Nigerian economy maintains path to recovery in Q1 2017

The 2017 first quarter Gross Domestic Product (q1 2017 GDP) figures released by the National Bureau of Statistics on Tuesday showed that Nigeria’s economy is emerging slowly out of recession.

The figure which showed that growth has continued in agriculture also indicated that a notable positive turnaround has now been recorded in manufacturing and non-oil sectors, while a slowdown in negative growth rates is noticed in several more sectors.
This was contained in a statement released by the Presidential Adviser on Economic Matters, Adeyemi Dipeolu, on GDP figures for the first quarter of 2017.
The statement was made available to newsmen by Laolu Akande, the spokesperson of Acting President Yemi Osinbajo.

Part of the statement read, “The latest figures released by the National Bureau of Statistics show that the economy shrank by 0.52 per cent in the first quarter of 2017 (Q1 2017). Although the economy remains in recession this is the strongest performance in five quarters and shows a significant turnaround from the low of -2.34 per cent reached in the third quarter of 2016 (Q3 2016).

“This is nearly two percentage point improvement and also reflects the fact that the number of sub-sectors that experienced negative growth has almost halved falling from 29 sub-sectors for the whole of 2016 to 16 sub-sectors in Q1 2017.

“Agricultural growth remained in positive territory albeit growing at a slower rate of about 3.4 per cent, no doubt due to seasonal factors.

“Growth in manufacturing on the other hand returned to positive territory after five quarters of negative growth. It grew by 1.36 per cent in Q1 2017 after falling to a nadir of -7.0% in Q1 2016.

“The solid mineral sector continued to justify the priority given to it by the Federal Government with high double digit growth for metal ores and quarrying at 40.79 per cent and 52.54 per cent respectively.”

According to the statement, growth in the oil sector remained negative at -11.64 per cent although there was an over six percentage point improvement in its fortunes from the previous quarter.

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“More significantly, the non-oil sector which accounts for about 90 per cent of GDP returned to positive growth although at a marginal level of 0.72 per cent in Q1 2017. This is the first positive growth in the non-oil sector since the last quarter of 2015″, the statement noted.

It added that headline inflation fell for the third month in a row to 17.24 per cent, with core inflation also declining quite rapidly.

“However, food inflation remains of concern as it continues to trend upwards. This is mainly due to rising transport costs and other structural impediments to the movement of foods in the domestic market. The trade balance remained positive reflecting import contraction and relatively higher export revenues which grew year-on-year by up to 80.5 per cent.

“The overall picture that the figures show is that the economy is emerging slowly out of recession. This outlook is reinforced by positive trends in other indicators such as improved oil prices and increasing production, rising foreign exchange reserves, increased capital spending by the Federal Government as well as improved perceptions reflected in various purchasing and sales managers indices,” the statement said.

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