Real GDP grew by 6.18% in Q2 2013; slower than 6.56% in Q1

Proshare

September 09, 2013/ National Bureau of Statistics

On an aggregate basis, the economy when measured by the Real Gross Domestic Product (GDP), grew by 6.18 percent in the second quarter of 2013, slower than the 6.56 percent recorded in the first quarter of 2013 and 6.39 percent recorded in the corresponding quarter of 2012.

The nominal GDP for the second quarter of 2013 was estimated at N9, 115,320.72 million; lower than N9, 840,226.91 million estimated for the corresponding quarter of 2012 and N9, 493,779.44 million recorded in the first quarter of 2013.

The economy can be broadly classified into two output groups: Oil and Non-oil sectors. While the oil sector experienced production challenges, the non-oil sector output increased in the second quarter of 2013. The non-oil sector growth was driven by growth in activities recorded in the agriculture, airlines, hotels & restaurants, as well as building & construction sectors.

Oil Sector
The average daily production of crude oil in the second quarter of 2013 was recorded at 2.11 million barrels per day, a decline from 2.29 million barrels per day recorded in the first quarter of the year, and 2.38 million barrels per day recorded in the second quarter of 2012. These figures, with their associated gas components, resulted in a real growth rate of -1.15 percent in oil GDP for the second quarter of 2013, compared to from the -0.54 percent recorded in the first quarter of 2013 and -0.78 percent recorded in the corresponding period of 2012.

The Oil sector contributed approximately 12.9 percent to real GDP in the second quarter of 2013, lower than the 14.75 percent contribution in the first quarter of 2013, and the 13.86 percent recorded during the second quarter of 2012.

Non-oil sector
Despite the persistent challenges facing the oil sector, the non-oil sector continues to sustain the Nigerian economy. In the second quarter of 2013, the non-oil sector recorded 7.36 percent growth in real terms compared with 7.63 percent at the corresponding period in 2012, and 7.89 percent in the first quarter of 2013.

This relative decline was partly attributed to lower electricity generation during the period which had ripple effects on Other manufacturing, Telecommunications as well as Wholesale and Retail trade. In the following sections, the performance of the major industries in the non-oil sector in the second quarter of 2013 is further analysed to give a better understanding of their contribution to the Nigerian economy.

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