…As FG Projects better economic outlook for 2nd Half of 2016
Reports reaching Economic Confidential from the National Bureau of Statistics (NBS) indicates that Consumer Price Index (CPI) has risen to 17.1 per cent in July from 16.5 per cent in June.
In the latest data released by the NBS in Abuja, the CPI, which measures inflation, was 0.6 per cent points higher from the points recorded in June.
“The pace of the increase in the headline index was however weighed upon by a slower increase in three divisions; Health, Transport, and Recreation and Culture divisions.
“The onset of the harvest season is yet to have a significant impact on food prices.
“It is yet to have a significant impact as the Food Sub-index increased by 15.8 per cent (year-on-year) in July, 0.5 per cent points lower from rates recorded in June.
“Prices however increased at a slower pace across a few groups within the Food sub-index namely Milk, Cheese and Eggs; Oils and Fats; and Fruits,’’ it said.
The report added that imported foods as reflected by the Imported Food Sub-index increased by 0.4 per cent points from June to 20.5 per cent in July.
It said that energy and energy related prices continued to be the largest increases reflected in the Core sub-index.
“In July, the Core sub-index increased by 16.9 per cent during the month, up by 0.7 per cent points from rates recorded in June (16.2 per cent).
“During the month, the highest increases were seen in the Electricity, Liquid Fuel (kerosene), Solid Fuels, and “Fuels and Lubricants for Personal Transport Equipment” groups.
“Month-on-month, the headline index increased albeit, at a slower pace for the second consecutive month in July.
“The index increased by 1.3 per cent in July, 0.4 per cent points from 1.7 per cent recorded in June,
Furthermore, in the Second Quarter of 2016, the nation’s Gross Domestic Product (GDP) declined by -2.06% (year-on-year) in real terms. This was lower by 1.70% points from the growth rate of –0.36% recorded in the preceding quarter, and also lower by 4.41% points from the growth rate of 2.35% recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP increased by 0.82%
During the quarter, nominal GDP was N23, 483,954.78 million (in nominal terms) at basic prices. This was 2.73% higher than the Second Quarter 2015 value of N22, 859,153.01 million. This growth was lower than the rate recorded in the Second Quarter of 2015 by 2.44% points. The Nigerian economy can be more clearly understood according to the oil and non-oil sector classifications’’ the report stated.
Meanwhile the Federal Government has projected better economic outlook for the second half of the year as figures indicate further growth in Agric, solid mineral sectors.
In a statement by the Special Adviser to the President on Economic matters, Dr. Adeyemi Dipeolu , government said the report is far better than International Monetary Fund (IMF) estimates as it reveals highest increase in share of investment in GDP since 2010
“The just released GDP figures for the 2016 second quarter by the National Bureau of Statistics while confirming a temporary decline, has also indicated an hopeful expectation in the country’s economic trajectory”, said Dr. Dipeolu.
He said besides the growth recorded in the agriculture and solid mineral sectors, the Nigerian economy in response to the policies of the Buhari presidency is also doing better than what the IMF had estimated with clear indications that the second half of the year would be even much better.
He said the administration will continue to work diligently on the economy and engage with all stakeholders to ensure that beneficial policy initiatives are actively pursued and the dividends delivered to the Nigerian people.