For the first time in more than three years, the nation’s economy shrank in the second quarter of this year as the Gross Domestic Product fell by 6.10 per cent.
The National Bureau of Statistics, in its GDP report for Q2 2020, said on Monday that the decline was largely attributable to significantly lower levels of both domestic and international economic activity, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic.
“Gross Domestic Product decreased by –6.10 per cent (year-on-year) in real terms in the second quarter of 2020, ending the three-year trend of low but positive real growth rates recorded since the 2016/17 recession,” the NBS said.
It said when compared with Q2 2019, which recorded a growth of 2.12 per cent, the Q2 2020 growth rate indicated a drop of 8.22 per cent, and a fall of 7.97 per cent when compared to the first quarter of 2020 (1.87 per cent).
“Consequently, for the first half of 2020, real GDP declined by –2.18 per cent year on year, compared with 2.11 per cent recorded in the first half of 2019. Quarter on quarter, real GDP decreased by –5.04 per cent. Furthermore, only 13 activities recorded positive real growth compared to 30 in the preceding quarter,” it added.
The Nigerian economy, which emerged from its first recession in 25 years in the second quarter of 2017 when it posted a 0.7 per cent growth, had continued its slow recovery since then.
With another negative growth rate likely in Q3 2020, the economy will slide into its second recession in four years.