Nigeria's economy on a U-Shaped Recovery

Nigeria's economy on a U-Shaped Recovery

Nigeria's economy on a U-Shaped Recovery

Statistics South Africa announced on Tuesday that agriculture, fisheries and forestry were a major contributor to lifting of the country's GDP with increased production of 33.6 percent.

"The non-oil sector grew by 0.45% in Q2 2017, a second successive quarterly growth after growing 0.72% in Q1 2017".

The bureau, however, stated that the growth recorded in quarter was 2.04 per cent higher than the rate recorded in the corresponding quarter of 2016 (-1.49 per cent).

South Africa's recession was much more shortlived, at just two quarters, and the rebound was fuelled by expansion of more than 30 percent in the agricultural sector, according to Statistics South Africa.

At the time, the President said interventions that will be implemented to mitigate the effects of the technical recession would be in the areas of energy, manufacturing, transport, telecommunications, water, tourism and the oceans economy, among others.

Its spokesman, Senator Aliyu Sabi Abdullahi released a statement, commending the reported improved performance of the trade, manufacturing, agriculture and oil sectors. Meanwhile, the growth was forecast to moderate to 0.5 percent.

This is still lagging Nigeria's population growth of 2.3%.

Foreign portfolio investment - on which South Africa relies to fund the current account deficit - recorded inflows of R10.1 billion in the first quarter after heavy outflows of R57.3 billion in the fourth quarter.

Damilola Ehinmitan, a banker, said that the naira to dollar exchange remained high at 305 in the interbank market and between 360 and 365 at the parallel market saying that did not reflect economic growth.

The first hint of recovery came in the fourth quarter previous year when, despite still in being in a recession, the economy showed an uptick.

On the expenditure side, household final consumption grew 4.7 percent over the quarter, while gross fixed capital formation decreased by 2.6 percent.

On his part, Mr Abdulrauf Aliyu, a development economist and public analyst, said government must now focus on improving the quality of life of Nigerians.

The party said this in reaction to the news that Nigeria had exited recession.

Second-quarter data shows year-on-year GDP growth was 1.1%, and for the six months growth has been 1.1%.

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