Wednesday, August 31, 2016 10:21am /NBS
In the Second Quarter of 2016, the nation’s Gross Domestic Product (GDP) declined by -2.06% (year-on-year) in real terms. This was lower by 1.70% points from the growth rate of –0.36% recorded in the preceding quarter, and also lowers by 4.41% points from the growth rate of 2.35% recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP increased by 0.82%
During the quarter, nominal GDP was N23,483,954.78 million (in nominal terms) at basic prices. This was 2.73% higher than the Second Quarter 2015 value of N22,859,153.01 million. This growth was lower than the rate recorded in the Second Quarter of 2015 by 2.44% points. The Nigerian economy can be more clearly understood according to the oil and non-oil sector classifications (Figure 1):
The Oil Sector
During the period under review, Oil production was esti-mated at 1.69million barrels per day (mbpd), 0.42 mil-lion barrels per day lower from production in First Quarter of 2016. Oil production was also lower relative to the corresponding quarter in 2015 by 0.36million barrels per day when output was recorded at 2.05mbpd. (Figure2)
As a result, real growth in the oil sector was negative 17.48% (year-on-year) in the Second Quarter of 2016. Growth declined by 10.68% points and 15.59% points rela-tive to growth in the Second Quarter of 2015 and First Quarter of 2016 respectively. Quarter-on-Quarter, growth also slowed by -19.11%.
As a share of the economy, the Oil sector contributed 8.26% to total real GDP, down from the contribution recorded in the corresponding period of 2015 and the First Quarter of 2016 by 1.54% points and 2.03% points respectively
The Non-Oil Sector
Growth in the Non-oil sector was largely driven by the following 7 activities of Agriculture, Information & Communication, Water supply, Arts entertain-ment and recreation, Professional scientific and technical services, Education and Other Services which all grew positively while the remaining 19 major sectors, many of which are substantially indirectly dependent on the oil sector recorded negative growth.
The non-oil sector accordingly, declined by 0.38% in real terms in the Second Quarter of 2016. This growth rate was 0.20% points lower than the First Quarter of 2016 (-0.18%), and 3.84% points lower from the corresponding quarter in 2015 (3.46%) (Figure 3).
In real terms, the Non-Oil sector contributed 91.74% to the nation’s GDP, higher from shares recorded in the First Quarter of 2016 (89.71%) and the Second Quarter of 2015 (90.20%).
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