Nigeria’s Gross Domestic Product (GDP) contracted by -0.52 per cent (year-on-year) in real terms in the first quarter (Q1) of 2017, a report by the National Bureau of Statistics (NBS), has indicated.
The NBS report, tagged, ‘Nigerian Gross Domestic Product Report for first quarter 2017’ released yesterday in Abuja, according to the NBS, represented the fifth consecutive quarter of contraction since the first quarter of 2016.
Meanwhile, the Presidency yesterday assured that there were strong indications that Nigeria was gradually exiting economic recession.
The Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu gave the indication in a statement while releasing the 2017 Q1 gross domestic product (GDP) figures.
According to him, there was a turnaround in the manufacturing and non-oil sectors.
He said there was also an increasing reduction in the sectoral negative growth.
He said: “The latest figures released by the National Bureau of Statistics showed 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 per cent 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.
“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.
“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 0.72per cent in Q1 2017. This is the first positive growth in the non-oil sector since the last quarter of 2015.
“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.
“Barring major economic shocks, it should still be possible to restore growth this year as projected in the Economic Recovery and Growth Plan.” he stated
