Friday, September 24, 2021

    Trade, Information Technology Stimulate Nigeria’s Sharp Economic Recovery by 5.01% in Q2 2021…

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    Naija247news Editorial Team
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    July ’21 Inflation Rate: 17.38%
    In the second quarter of 2021, Nigeria printed a year-on- year (y-o-y) real output growth rate of 5.01% to N16.69 trillion (or USD111.08 billion) as it recovered faster from last year’s recession. Specifically, we have seen FG significantly ease lock down measures as households and businesses were allowed to resume economic activities. The several billions of Naira in economic stimulus packages provided by the monetary and fiscal authorities to help households and businesses cope with the effects of COVID-19 also supported the sharp economic recovery witnessed in the review period.
    Particularly, the rapid growth was propelled essentially by a 6.74% growth in non-oil sector; with the trade, Information & Communication, Manufacturing and Agricultural sectors recording the biggest growth rates of 22.49%, 5.55%, 3.49% and 1.30% respectively. In the oil & gas sector, however, we saw a 12.65% y-o-y decline in real output to N1.24 trillion (or USD8.25 billion) as average daily oil production fell y-o-y by 12.29% to 1.42 million barrels per day (mbpd). We note that the increase in crude oil price did not compensate for the reduction in crude oil supply.
    On a quarterly basis, real GDP declined by 0.79% to N16.69 trillion from N16.83 trillion (or USD111.96 billion) in Q1 2021; with the non-oil sector rising by 1.21% to N15.46 trillion (or USD102.83 billion). Agriculture, Trade and Information & Communication sectors, the three largest contributors to real GDP at 58.36% (combined), rose by 7.51%, 5.85% and 19.28% respectively. However, the oil & gas sector plunged by 20.35% to N1.24 trillion (or USD8.25 billion).
    We note that the sharp rise y-o-y in Q2 2021 was amid low base effect as the negative effect of COVID-19 was more intense in Q2 2020; hence, reducing economic activities, especially in the trade sector. Contribution from Info & Comm sector also expanded amid increase in online activities. We expect moderate growth in Q3 2021 amid constraints to agricultural output partly due to insecurity

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