Nigeria plunges into second recession in 5 years
Nigeria, Africa’s largest economic system, has entered its second recession in 5 years as official figures printed on Saturday present that the economic system shrank once more within the third quarter of this yr.
This yr’s recession, ocassioned by the financial fallout of the COVID-19 pandemic, is worse than that of 2016.
The Nationwide Bureau of Statistics, in its Gross Home Product report for Q3, mentioned the GDP, the broadest measure of financial prosperity, fell by 3.62 within the three months to September.
Economists think about two consecutive quarters of shrinking GDP because the technical definition of a recession.
For the primary time in additional than three years, the Nigerian economic system shrank within the second quarter of this yr because the GDP fell by 6.10 per cent, in contrast with a development of 1.87 per cent in Q1.
The NBS had mentioned in August that the financial decline in Q2 was largely attributable to considerably decrease ranges of each home and worldwide financial exercise ensuing from nationwide shutdown efforts geared toward containing the COVID-19 pandemic.
It mentioned the contraction in Q2 dropped at an finish the three-year development of low however constructive actual development charges recorded for the reason that 2016/17 recession.
The economic system, which emerged from its first recession in 25 years in Q2 2017 when it posted a 0.7 per cent development, had continued its gradual restoration since then however the COVID-19 disaster made issues worse.
In 2016, the economic system slipped into recession in Q2 because the GDP shrank by 2.1 per cent after falling by 0.4 per cent in Q1 on the again of the steep fall in international crude oil costs and the nation’s manufacturing volumes.
Final month, the World Financial institution revised its 2020 forecast for Nigeria’s economic system to -4.1 per cent from its earlier projection of -3.2 per cent, saying the nation’s near-term outlook was topic to “appreciable uncertainty”.
The financial institution had mentioned in June that the collapse in crude oil costs, coupled with the COVID-19 pandemic, was anticipated to “plunge the Nigerian economic system right into a extreme recession, the worst for the reason that Nineteen Eighties”.
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