Latest data from the National Bureau of Statistics, Nigeria’s gross domestic product contracted on a year on year basis by 0.52%.
According to the NBS, the latest data represents a fifth consecutive quarter of contraction since Q1 2016.
This is 0.15% higher than the rate recorded in the corresponding quarter of 2016 (revised to –0.67% from –0.36%) higher by 1.21% points from rate recorded in the preceding quarter, (revised to –1.73% from –1.30%). Quarter on quarter, real GDP growth was –12.92%
During the quarter, aggregate GDP stood at N26 trillion in nominal terms, compared to NGN22 trillion in Q1 2016, resulting in a Nominal GDP growth of 17.06%. This growth was higher relative to growth recorded in Q1 2016 (11.39%).The data means Nigeria is not yet of recession as anticipated by many sectors of the economy.
The data is coming on the heels of an improved Forex liquidity which has reduced pressure on the Naira (NGN).
Analysts, however, said there is no cause for alarm as the data was expected to remain in a positive territory. They, however, cautioned that stability in the Forex market should be sustained to ensure pressure on the Naira can reduce and lead to a downward trend in the price of consumer goods which dominate about 80% of the GDP.
The news has launched a major impact on the Nigerian Stock Exchange with the all share index falling by 0.12% as at the time of writing this report.