GDP falls to 1.50% in Q2 – NBS

Nigeria’s Gross Domestic Product (GDP) has declined from 1.95 percent recorded in the first quarter (Q1) to 1.50 percent in Q2 2018, indicting 0.45 percent contraction.

The National Bureau of Statistics (NBS) in a report released on Monday, says the economy grew by 0.72 percent in the same period in 2017 (Q2 2017).

However, the NBS reported that for the first time since the exit from recession, growth was driven by the non-oil sector at 2.05 percent, representing the strongest growth in non-oil GDP since Q4 2015.

Non-oil GDP growth was -0.18% in Q1 2016, -0.38% in Q2 2016, 0.03% in Q3 2016, -0.33% in Q4 2016, 0.72% in Q1 2017, 0.45% in Q2 2017, -0.76% in Q3 2017, 1.45% in Q4 2017and 0.76% in Q1 2018 gr(Q2 2018ew strongly in Q2 2018 by 2.05%.

According to the NBS, non-oil growth was driven by transportation which recorded 21.76 percent growth, supported by construction, which grew by 7.66 percent and electricity by 7.59 percent.

Other non-oil sectors that enhanced growth in Q2 2018 include: telecommunication which grew by 11.51 percent, water supply and sewage witnessed 11.98 percent growth and broadcasting grew by 21.92 percent.

The non oil sector performance was however constrained by Agriculture, which recorded 1.3 percent decline compared to 3.00 percent growth recorded in Q1 2018 and 3.01 percent in Q2 2017, respectively.

The NBS further said Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95 percent compared to 14.77 percent in Q1 2018 and 3.53 percent in Q2, 2017.

Services GDP recorded best performance in nine quarters, growing by 2.12 percent in Q2, 2018 compared to -0.47 percent in Q1 2018 and -0.85 percent in Q2, 2017.