NBS: Nigeria’s GDP Grows By 0.82 Percent In 2017

Further growth in the fourth quarter of 2017, shows the economy grew by 1.92%

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Nigeria returned to growth in 2017 after suffering its first recession in a generation the previous year, data released from the country’s statistics office shows on Tuesday.

The country gross domestic product (GDP) grew by 0.83 percent in 2017 after shrinking by 1.58 percent in 2016, which was its first annual contraction in 25 years, according to the National Bureau of Statistics (NBS) data.

The NBS figures indicate a further growth in the fourth quarter of 2017, showing the economy grew by 1.92%.

Reuters reports that the country returned to growth in the second quarter of 2017 but the recovery has been fragile since it is largely due to higher oil prices.

The International Monetary Fund (IMF) in December says that the economy remains vulnerable.

Growth in the last quarter of 2017 rose to 1.92 percent compared to a 1.73 percent contraction in the same period of the previous year, according to the NBS data.

Oil production rose to 1.91 million barrels a day (mbpd) in the fourth quarter from 1.76 mbpd in the same period of 2016, the statistics office says.

In the previous third quarter of 2017, the Nigerian economy grew by 1.4%, and this latest figure for the fourth quarter marks the third consecutive growth since the exit from recession in the second quarter of 2017.

The latest GDP figures now show the economy improving in all major sectors, including especially the non-oil sector which had contracted for quite a while.

Dr Adeyemi Dipeolu
Special Adviser to the President on Economic Matters

Meanwhile, the Federal government says plans to grow the Nigerian economy in 2018 up to 3.5 per cent is on course.

The Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu says.

Here is the statement by Dr. Dipeolu on the latest NBS figures on the economy:

“The figures recently released by the Nigerian Bureau of Statistics (NBS) for the fourth quarter of 2017 (Q4 2017) and the full year 2017 (FY 2017) show a consolidation of post-recession growth in the national economy.

“The growth of 1.92% in Q4 2017 was an improvement on both the previous quarter and the previous year.

This quarterly growth contributed to an overall positive growth rate of 0.82% in 2017 which translates to a 2.24% points increase from -1.58% in 2016.

“There are two encouraging aspects of the figures.

The first is that all major sectors of the economy namely agriculture, industry and services are now experiencing positive growth.

“Agriculture, which accounted for 25% of GDP in 2017, grew by 4.23% in Q4 2017; while Industry grew by 3.92%.

The Services sector, which is about 53% of GDP, returned to positive growth in Q4 2017.

Although the increase was marginal at 0.10, it represented a positive swing of 2.76% points from the level in Q3 2017.

“The other notable element of the data is that the non-oil sector experienced a strong growth of 1.45% in Q4 2017 as compared to a contraction in the previous quarter and the whole of 2016. This showing, the strongest since 2015, points to steady improvements across the economy.

“Also noteworthy in this regard were strong quarterly growth in crop production, crude oil production, metal ores, construction, transportation, trade, electricity and gas production.

“The positive trajectory for the economy should begin to gain momentum as the multiplier effects of investments in infrastructure, including power, roads, and rail, alongside improvements in the business environment begin to manifest.

“The agricultural sector is expected to continue its strong showing, while manufacturing should also show sustained growth based on improved availability of foreign exchange and greater backward integration in several of its sub-sectors.

“Taking all these factors into consideration, the Federal Government estimate of 3.5% growth in 2018 is quite achievable”.

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