Monday, November 17, 2014 8.00 PM / DLM Research
Nigeria’s gross domestic product grew by 6.23% y/y in the third quarter of 2014, up by 106bps from 5.17% recorded in the 2Q13 but 31bps lower than the 6.54% posted in the previous quarter. The nominal GDP posted in 3Q14 was estimated at ~N22.93 trillion ($147.96bn) against N21.73 trillion ($140.22bn) and N20.46 trillion ($132.03bn) recorded in 2Q14 and 3Q13 respectively. However, 3Q14 GDP stands at ~N17.48 trillion ($112.77bn) in real terms up from N16.08 trillion ($103.77bn) in the previous quarter. The non-oil sector remained the key driver of growth in 3Q14 even as we highlight the recovery to 7.51% from 6.71% in the preceding quarter. However, the oil sector growth reversed during the review quarter to -3.60% from 5.40% in 2Q14, though representing an improvement from -14.72% in the corresponding period of 2013.
Services sector maintained its position as the leading contributor to GDP in 3Q14 with a contribution of 49.16%. The dominant contribution of the services sector was sustained in 3Q14 as it contributed 49.16% (N8.59trillion) to GDP in 3Q14, followed by the agriculture and industry sector with a contribution of 26.63% (N4.65trillion) and 24.20% (N4.23trillion) respectively (fig.3).
We observed the increased contribution of the agriculture sector in 3Q14 as it led the industry sector for the first time in three quarters. On a q/q basis, we note the decline in contribution of the services and industry sector from 53.15% and 25.96% respectively in the previous quarter. On the other hand, the agriculture sector recorded a significant leap from 20.89% in 2Q14. Consequently, the increased contribution of the agriculture sector accounted for N4.65trillion of total GDP recorded in 3Q14 (fig.4).
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1. GDP by Expenditure: Total Expenditure on GDP increases by 6.02% in Q1 2014
2. Nigeria’s Real GDP Records 6.23% Growth in Q3’14; Higher Than Q3’13 Growth Rate
3. Foreign Trade Report: Strong Merchandise Trade Growth in Q2 2014
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