The National Bureau of Statistics has released the worst kept secret in the country over the last couple of months. Nigeria economy is in recession! The 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 .
The second quarter negative growth rate recorded this year confirmed earlier predictions by economist, The federal government and international agencies that the economy was heading into recession.
A country is deemed to have fallen into recession when there is a significant decline in economic activities, lasting longer than a few months. Technically speaking, it refers to two simultaneous quarters of negative economic growth as measured by the Gross Domestic Product of the country.
According to the GDP figures 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.”
Sector analysis of the economy shows that the oil sector experienced a decline of 17.48 percent, while the agricultural sector grew by 13.24 percent within the quarter. The mining sector shrunk by 47.9 percent while manufacturing declined by 1.02 percent, the general non-oil sector also declined by 0.38 percent.