Nigeria officially entered into a recession over the weekend following the release of the 3rd quarter Gross Domestic Product numbers.
Economic recession is regarded as two consecutive quarters of negative growth domestic product growth.
The gross domestic product contracted for second consecutive quarter by 3.62 per cent in the 3rd quarter of 2020.
Interestingly, the contraction wasn’t as deep as envisaged.
Some of the highlight of Nigeria’s Gross Domestic Product Data
In the 3rd quarter of 2020, Real Gross Domestic Product contracted by 3.62 per cent year on year, with an improvement of 2.48 per cent, over the -6.10 per cent growth rate recorded in the 2nd quarter of the year.
Growth in the 3rd quarter of 2020 was slower by 5.90 points when compared to the 3rd quarter of 2019 which recorded a real growth rate of 2.28 per cent year on year.
The cumulative GDP for the first nine months of 2020, therefore, stood at -2.48 per cent.
A close look at the Oil GDP
Oil sector GDP was 13.89 per cent down as against -6.63 per cent recorded in the 2nd quarter of 2020 indicating a sharp contraction of -20.38 per cent point relative to the rate recorded in the corresponding quarter of 2019
The oil sector contributed 8.73 per cent total real GDP in the 3rd quarter of 2020 down from 9.77 per cent in the corresponding period of 2019 at 8.93 per cent the 2nd quarter of 2020
The non-oil GDP contracted by 2.51 per cent as against – 6.05 per cent in the 2nd quarter of the year and 1.85 per cent in the corresponding period of 2019.
In real terms, the non-oil sector contributed 91.27 per cent to the nation’s GDP in the 1st quarter of 2020 higher than its share in the 1st quarter of 2019 which stood at 90.23 per cent and the 2nd quarter of 2020 which stood at 91.07 per cent
