Nigeria officially in recession, GDP growth drops to -2.06%
The National Bureau of Statistics on Wednesday released the much-awaited Gross Domestic Product figures for the second quarter of 2016 with the GDP growth rate sliding further from -0.36 per cent in the first quarter to -2.06 per cent year-on-year.
The negative growth rate recorded in the second quarter of this year is a confirmation of the predictions by the Federal Government and economists that the country was heading into recession.
The negative growth rate recorded in the second quarter of this year is a confirmation of the predictions by the Federal Government and economists that the country was heading into recession.
A recession is defined as a
significant decline in activities across the economy, lasting longer than a few
months. It is visible in industrial production, employment, real income and
wholesale retail trade.
The
technical indicator of a recession is two consecutive quarters of negative
economic growth as measured by a country’s GDP.
In the GDP report released by the
NBS, the bureau said, “In the second quarter of 2016, the nation’s Gross
Domestic Product declined by -2.06 per cent (year-on- year) in real terms.
“This was lower by 1.70 per cent
points from the growth rate of –0.36 per cent recorded in the preceding
quarter, and also lower by 4.41 per cent points from the growth rate of 2.35
per cent recorded in the corresponding quarter of 2015. Quarter on quarter,
real GDP increased by 0.82 per cent.”
Punch
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