Nigeria’s Economy Narrowly Rebounds, Exits Recession

Nigeria's Economy Narrowly Rebounds, Exits Recession
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Nigeria’s economy has slightly exited one of its worst recessions after spending three quarters in the negative zone according to official figures from the National Bureau of Statistics (NBS).

The Gross Domestic Product (GDP) grew by 0.11 percent (year-on-year) in real terms in the fourth quarter of 2020 (Q4 2020), representing the first positive quarterly growth in the last three quarters.

The performance appeared to have signaled an exit from the second recession.

Read Also: Coronavirus Plunges World Economy Into Brutal Recession

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, the NBS stated.

As a result, while the Q4 2020 growth rate was lower than the growth rate recorded the previous year by –2.44 percentage points, it was higher by 3.74 percentage points compared to Q3 2020.

According to the fourth quarter 2020 GDP estimates released Thursday, 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.

Nigerians may disagree with the figures as prices of food items in the markets and general cost of production don’t show any signs of subsiding.

AFRICA DAILY NEWS, NEW YORK

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