Trade and Information Technology Boost Nigeria’s Strong Economic Recovery by 5.01% in Q2 2021 …

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July 21 inflation rate: 17.38%
1.50%
In the second quarter of 2021, Nigeria posted a year-over-year (year-over-year) real output growth rate of 5.01% to 16.69 trillion naira (or $ 111.08 billion) while it was recovering faster from last year’s recession. Specifically, we have seen FG significantly ease the foreclosure measures as households and businesses have been allowed to resume economic activities. The multibillion naira of economic stimulus packages provided by monetary and fiscal authorities to help households and businesses cope with the effects of COVID-19 also supported the strong economic recovery observed during the review period.
In particular, rapid growth was propelled primarily by 6.74% growth in the non-oil sector; with the trade, information and communication, manufacturing and agriculture sectors recording the highest growth rates of 22.49%, 5.55%, 3.49% and 1.30% respectively. In the oil and gas sector, however, we saw a 12.65% year-on-year decline in actual production to 1.24 trillion naira (or $ 8.25 billion) as the average daily oil production fell. fell 12.29% year-on-year to 1.42 million barrels per day (mbpd). Note that the increase in the price of crude oil did not compensate for the reduction in the supply of crude oil.
On a quarterly basis, real GDP declined 0.79% to 16.69 trillion naira from 16.83 trillion naira (or $ 111.96 billion) in the first quarter of 2021; the non-oil sector increasing by 1.21% to 15.46 trillion naira (or $ 102.83 billion). The agriculture, trade and information and communication sectors, the three biggest contributors to real GDP at 58.36% (combined), grew by 7.51%, 5.85% and 19.28%. However, the oil and gas sector plunged 20.35% to 1,24 trillion naira (or $ 8.25 billion).
We note that the strong year-over-year increase in Q2 2021 occurred in a weak base effect, as the negative effect of COVID-19 was more intense in Q2 2020; hence the reduction in economic activities, especially in the commercial sector. The contribution of the Info & Comm sector also increased in a context of increasing online activities. We forecast moderate growth in the third quarter of 2021 amid constraints on agricultural production partly due to insecurity

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Naija247news is an investigative news platform that tracks news on the Nigerian economy, business, politics, finance and Africa and the global economy.


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