GDP By Income and Expenditure Approach Q4 2019 - Household Final Consumption Declined by -2.40%

Thursday, April 30, 2020  09:30 AM / NBS/ Header Image Credit: NBS

In the second quarter of 2019, Nigeria's real GDP at basic prices grew by 2.12% on a year on year basis. Growth accelerated further in the third and fourth quarters by 2.28% and 2.55%. The steady increase in quarterly growth resulted in an annual growth rate of 2.27% for 2019, compared to 1.91% in 2018 on a year on year basis. Compared to the second quarter of 2018, the performance in 2019 indicated an increase of 0.61% points while the third and fourth quarters were 0.47% points and 0.17% points higher, respectively, than the corresponding quarters of 2018 .

Household Consumption Expenditure, in Q2, Q3 and Q4 grew by -1,33%, -3.7% and 0.38% in real terms, year on year. For 2019, the annual growth rate in real household consumption expenditure stood at -2.40% compared to 4.63% in 2018. Government Consumption Expenditure recorded growth rates at 11.92%, 16.20% and 5.41% in Q2, Q3 and Q4 respectively, year on year, while annual growth rate stood at 15.04% against 39.85% in 2018.

Net Exports recorded positive growth rates in all four quarters of 2019, a departure from the trend in 2018. While no change was recorded in Q2 2019, net exports grew in real terms in Q3 and Q4 by 17.94% and 3.4% respectively.  On an annual basis, net exports grew by 7.64% in 2019 compared to -17.45% recorded in 2018.

National Disposable Income grew by 1.44% in the second quarter of 2019, but recorded negative growth in Q3 (-0.61%) and Q4 (-1.46%) on a year on year basis. For 2019, growth in national disposable income stood at 0.38% compared to -1.03% in 2018. 

Compensation of Employees, during the second, third and fourth quarters of 2019 grew 10.71%, 11,23% and 9.79% respectively in real terms on year on year basis. For 2019, growth rate stood at 8,99% compared to 12.22% in  2018.

Real Year-on-year Growth Rates of Key Aggregates (percent, %)* 

GDP by Expenditure

The Gross Domestic Product (GDP) can be derived as the value of all goods and services available for final uses and export. GDP at market prices includes net taxes on products; taxes are subtracted to obtain basic price GDP.

The expenditure approach measures the final uses of the produced output as the sum of Final consumption, Gross Capital Formation and Exports less Imports, which are considered in turn in this report. Consumption of fixed capital-a measure of depreciation of assets-comprises the difference between Gross Domestic Product (GDP) and Net Domestic Product (NDP) and is also considered in this report.

In 2019, the Gross Domestic Product grew in real terms by 2.27% year-on-year. This was a significant improvement compared to 1.91% recorded in 2018, and 0.82% recorded in 2017.