3Q14 GDP: Increase in Agricultural Activities Drives Growth


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).


Related News:
GDP by Expenditure: Total Expenditure on GDP increases by 6.02% in Q1 2014
Nigeria’s Real GDP Records 6.23% Growth in Q3’14; Higher Than Q3’13 Growth Rate
Foreign Trade Report: Strong Merchandise Trade Growth in Q2 2014

Disclaimer/Advice to Readers:
While the website is checked for accuracy, we are not liable for any incorrect information included. The details of this publication should not be construed as an investment advice by the author/analyst or the publishers/Proshare. Proshare Limited, its employees and analysts accept no liability for any loss arising from the use of this information. All opinions on this page/site constitute the authors best estimate judgement as of this date and are subject to change without notice. Investors should see the content of this page as one of the factors to consider in making their investment decision. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions. This article is published with the consent of Dunn Loren Merrifield, the author(s) for circulation to the online investment community in accordance with the terms of usage. Further enquiries should be directed to the author whose e-mail is Dunn Loren Merrifield Limited [Email:todukoya@dunnlorenmerrifield.com]

Related News